German engineering giant Siemens AG yesterday confirmed its full-year forecast as it reported stable profit and slightly increased revenue in the second quarter.
Siemens, which runs its business year from October to September, said in a statement that net profit edged up 0.7 percent to 1.45 billion euros (US$1.58 billion) in the period from January to March.
Revenue was up 6 percent at 20.2 billion euros.
Siemens said it achieved strong growth in revenue in all its industrial businesses, ranging from wind turbines and power plants to trains and medical equipment.
Nevertheless, increased taxes and the winding down of some activities limited growth in the Munich-based group’s bottom line.
Meanwhile, Siemens said its order book swelled by 2 percent to 22.6 billion euros in the January-to-March period.
“We delivered another strong team performance and continued to outperform the markets,” chief executive Joe Kaeser said.
In the second half of the year, Siemens is to integrate newly purchased software firm Mentor Graphics Inc, acquired at the end of last year, into its business.
The US-based company is seen by managers as key to developing Siemens’ vision of future factories.
A second priority is the launch of wind turbine subsidiary Siemens Gamesa Renewable Energy, born from a merger with Spanish manufacturer Gamesa Corp Tecnologica SA.
Across the whole business, Siemens confirmed its forecast for the full financial year, expecting to report “modest” revenue growth.
Meanwhile, the group is aiming for a profit margin in its industrial business of between 11 and 12 percent, with earnings per share between 7.20 and 7.70 euros.
Siemens offered no new hints about the future of its “Healthineers” medical division.
Although it remains comfortably profitable, the unit is slated for a separate stock market flotation, as executives see little connection to the rest of the group.
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
Nissan Motor Co has agreed to sell its global headquarters in Yokohama for ￥97 billion (US$630 million) to a group sponsored by Taiwanese autoparts maker Minth Group (敏實集團), as the struggling automaker seeks to shore up its financial position. The acquisition is led by a special purchase company managed by KJR Management Ltd, a Japanese real-estate unit of private equity giant KKR & Co, people familiar with the matter said. KJR said it would act as asset manager together with Mizuho Real Estate Management Co. Nissan is undergoing a broad cost-cutting campaign by eliminating jobs and shuttering plants as it grapples
RSS