The German company leaves the Russian market with an adverse impact of 600 million
MADRID, 12 May. (EUROPA PRESS) –
The German engineering group Siemens obtained a net attributable profit of 1,034 million euros between January and March, the company’s second fiscal quarter, which represents a drop of 54.3% compared to the result recorded in the same period of the previous year, as reported by the multinational, which has confirmed its withdrawal from the Russian market.
In this sense, Siemens has specified that its net profit for the second fiscal quarter reflects a negative impact of 600 million euros in relation to Russia, mainly in the mobility business, following the sanctions imposed on the country, in contrast to the extraordinary profits 900 million for divestments accounted for in the second quarter of the previous year.
“We have decided to carry out an orderly process to close our commercial and industrial activities in Russia,” announced Roland Busch, president and CEO of Siemens, who recalled that the German company had been present in this market for almost 170 years.
Siemens’ turnover between January and March 2022 reached 17,040 million euros, 16% above the revenue recorded in the second quarter of the previous year, while orders received increased by 32% year-on-year, to 20,978 million .
Specifically, Siemens’ digital business increased its revenue by 13%, to 4,565 million, while the intelligent infrastructure area had a turnover of 4,009 million, also 13% more. For its part, the Siemens mobility business reduced its turnover by 6%, to 2,136 million, while the medical technology unit invoiced 5,460 million, 38% more.
“In the second quarter, Siemens continued its growth path and achieved a strong operating performance. The increase in orders and revenue once more reflects the trust our customers place in us to support digitalization, automation and sustainability.” highlighted Roland Busch, adding that in an “extremely challenging” environment, Siemens’ business “remains strong”.
In this way, in the first fiscal semester of Siemens, the German company obtained a net attributable profit of 2,677 million euros, 26.5% less than in the same period of the previous year, while the turnover grew by 17 %, up to 33,537 million euros and orders received increased by 42%, up to 45,188 million.
For the full year, the company has confirmed its financial targets and is confident of achieving 6% to 8% growth in like-for-like revenue.
Specifically, the multinational expects the digital area to increase its comparable turnover between 9% and 12%, when it previously anticipated an increase of 5% to 8%, with a profit margin of 19% to 21%.
Also, in smart infrastructure the company is confident of achieving like-for-like revenue growth of 6% to 9%, versus the 5% and 8% it previously expected, with a profit margin of 12% to 13%.
As for the mobility business, while previously expecting like-for-like revenue growth of 5% to 8%, it now expects revenue at the prior year level.
