Siemens beats forecasts for industrial profit

[ZURICH] Siemens posted better-than-expected industrial profit for its third quarter as the German engineering group weathered the effects of the coronavirus pandemic.

Orders and revenue both fell during the three months to the end of June, but the trains to industrial software maker still increased the operating profit of its industrial business, helped by an accounting gain and savings to cope to deal with the Covid-19 downturn.

Siemens said adjusted industrial profit for the three months to the end of June rose 8 per cent to 1.79 billion euros (S$2.92 billion), beating analyst forecasts for 1.17 billion euros in a company-gathered consensus.

The result was helped by a 211 million euro gain in the valuation of Siemens' stake in American industrial software company Bentley Systems, which offset declines elsewhere.

The Munich company, which is due to spin off its gas turbine business next month into a new company called Siemens Energy, said its third quarter revenues fell 5 per cent to 13.49 billion euros, missing forecasts for 13.67 billion euros.

REUTERS