Siemens Profit Up, But Turbines Earn Less

German industrial giant Siemens said net income rose 12% year on year to €2.2bn in October-December 2017, the first quarter of its 2018 financial year, including a largely tax-free gain from the sale of its majority stake in light bulb maker Osram.

However, Siemens said its Industrial Business profit for the quarter, also €2.2bn, was down by 14% due mainly to a sharp decline in Power and Gas segment, which produces power plant turbines and which reported a lower volume of orders. However, it said two large orders totaling 1.3 GW this month from Libya, including service, worth a combined €0.4bn, may reverse the negative trend during this quarter.

There had also been high revenues in the year before October-December 2016 quarter from large turbine orders in Egypt, it also noted.

Profit from Siemens' Power and Gas segment was down year on year by 49% at €238mn in October-December 2017 while the profit margin fell to 7.6% (from a year-before 12%); revenues from the segment were 20% lower at €3.15bn while orders were 8% lower at €3.06bn.