Tag: Siemens

Siemens sees slump in fossil-fuel power generation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Industrial equipment maker Siemens saw profit rise in the first three months of the year as the company booked a one-time gain related to pensions while profits from its factory digitalization business helped offset sagging results from fossil fuel power generation.

Net profit rose 39% to 2.02 billion euros ($2.39 billion) from 1.45 billion euros in the year-earlier quarter, the company’s fiscal second.

Revenue was flat at 20.1 billion euros after exchange rate shifts took 6% off. Orders slipped 2% to 22.3 billion euros.

Profit slumped 74% at the power and gas division, but jumped 40% at the digital factory division. The company booked a one-time gain of 900 million euros by transferring shares in IT firm Etos SE to its pension fund.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Siemens plans Power & Gas shutdowns due to power weakness

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Siemens said on Monday weakness in the power generation market is forcing it to temporarily shut down its Power & Gas (PG) sites around the world.

Large gas turbines are increasingly unloved as the world shifts to renewable energy, which is weighing on Siemens’ earnings and prompting the group to restructure the PG business.

In November, Siemens said it would cut 6,900 jobs, mainly at the PG division, which once thrived on supplying turbines for electricity generation. Excluding its services business, the PG division has around 30,000 employees worldwide, of which 12,000 are based in Germany.

“The shutdowns are part of a comprehensive package of measures, which also includes issues such as travel costs, sponsoring, participation in trade fairs and investments,” Siemens said in a statement on Monday.

Siemens said it aimed to temporarily shut down all of its PG sites after the Pentecost holiday later in May, depending on local regulation. It did not say how long each site would be closed for.

In Siemens’ fiscal first quarter through end-December, the division’s profit nearly halved and its profit margin shrank from 12% to 7.6%, well below the target range of 11 to 15%.

Analysts on average expect this to have accelerated in the second quarter, with the division’s profit seen down 62% from the year-earlier period, according to a Reuters poll.

Siemens is due to publish second-quarter results on Wednesday.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow