Siemens to Wind Down Russia Business, Taking EUR600 Million Impairment in Second Quarter

   By Ed Frankl 
 

Siemens AG said Thursday it would exit its Russia business, taking a hit to its second-quarter earnings.

The German industrial company said second-quarter profit was affected by around 600 million euros ($630.9 million) due to impairments and other charges related to Russia, mainly at its mobility segment.

Siemens' net profit declined on year in the January-March period as a result, falling to EUR1.21 billion from EUR2.39 billion a year earlier. The year-ago figure also included a EUR900 million gain from the sale of Flender to The Carlyle Group.

The net-profit figure was below expectations of EUR1.73 billion, according to analysts' estimates provided by the company.

However, revenue rose 16% to EUR17.04 billion, while orders jumped 32% to EUR20.98 billion, both coming in above consensus views.

The company said it avoided major disruptions from increased supply-chain risks associated with electronics components, raw materials and logistics.

Siemens confirmed its outlook for 2022.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

May 12, 2022 01:25 ET (05:25 GMT)

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