Siemens AG yesterday reported higher-than-expected profit in its fourth quarter as revenue advanced at most of its industrial business units and announced plans to spin off its healthcare division to further sharpen the focus at Europe’s largest engineering company.
Profit from so-called industrial operations reached 2.45 billion euros (US$2.68 billion) in the three months through September, little changed from the year-earlier period, the Munich, Germany-based company said in a statement.
Analysts had predicted an average of 2.41 billion euros, according to a Bloomberg survey.
Photo: EPA
“The fiscal year just ended was one of the strongest in the history of our company,” chief executive officer Joe Kaeser said in the statement. “Setting aside portfolio divestments, it was actually the best.”
Kaeser has been shifting the firm toward its energy divisions, which include its wind-turbine business that in June was merged with Spain’s Gamesa Corp.
The plan to list its healthcare unit further whittles down the firm’s sprawling portfolio, which includes high-speed trains, wind turbines and medical scanners. Over the past decade, Siemens has largely retreated from consumer products and focused on industrial applications, selling areas like telephones, light bulbs and hearing aids.
Sales in the fourth quarter rose 3 percent to 21.95 billion euros, while orders slipped 14 percent after the firm had taken in some large orders in the year-earlier period.
The power and gas division led sales with a 10 percent rise, while process industry and drives was the only division to report a revenue fall. The division was hurt by 199 million euros in severance charges related to job cuts in Germany.
For fiscal 2017, Siemens expects earnings per share of 6.80 euros to 7.20 euros.
Kaeser had previously cautioned about rising geopolitical uncertainty that could dampen next year’s results. He yesterday reiterated that Siemens continues to anticipate “headwinds” for macroeconomic growth amid a “complex geopolitical environment.”
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