Siemens Profit Hurt by Low Oil Price

By Christopher Alessi 

MUNICH--German industrial conglomerate Siemens AG reported Thursday a slight decline in net profit for the third quarter of fiscal year 2015, held back by weak growth at its power and gas division as it continues to be squeezed by low global oil prices.

Net attributable profit for the period ended June 30 was EUR1.36 billion ($1.49 billion), compared with EUR1.37 billion during the same period last year, beating analysts' forecasts. Analysts had forecast net profit of EUR1.03 billion, according to a recent poll conducted by The Wall Street Journal.

Revenue rose by 8%, to EUR18.84 billion, a result of strong growth in the Healthcare, Energy Management, Digital Factory and Building Technologies units. New orders increased by 4%, helped by a EUR1.6 billion long-term train maintenance order at the Mobility division.

Siemens reported a third quarter industrial profit margin of 9.5%, down from 10.1% last year, as profitability in the Healthcare and Energy Management divisions offset profit declines at the Power and Gas business. Analysts had expected a profit margin of 9.2%, according to the Journal poll.

The company reiterated its guidance for fiscal 2015, saying it still expects to achieve an industrial profit margin between 10% and 11%. Siemens also expects basic earnings per share for fiscal 2015 to increase at least 15%, from EUR6.37 in 2014, while revenue should remain flat year-over-year.

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