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Losses at its Gamesa wind power unit and feeble demand for large
turbines in the slowdown pushed the company's industrial profit
down by almost a third.
There were also problems at its flagship digital industries
division, where operating profit fell by nearly a third because
of weak demand from customers in the automotive and machine
building sectors.
"We have had better quarters in the past," Chief Executive Joe
Kaeser, who also faces protests by environmental protesters over
a contract to supply signaling equipment to a coal mine in
Australia, told reporters.
He said the weak performance in Siemens' energy businesses
"reinforces our priorities," referring to the plan to spin off
wind, gas and power into a separate company and list it later
this year.
"For the second half of the year, we expect stabilization of the
short cycle business and expect the development of financial
results to go accordingly," he said.
Kaeser said it was too early to say what the impact of the
coronavirus outbreak in China would be on Siemens.
He said it was "almost grotesque" that Siemens had been singled
out by environmentalists for criticism over its contract with
the Adani coal mine project in Australia, and that the company
would become climate neutral by 2030.
Environmental protesters gathered outside the company's
shareholder meeting, with placards bearing slogans saying "Stop
the coal mine.
The company's shares were down 0.73% at 0921 GMT.
During the first quarter, Siemens's industrial operating profit
fell 30% to 1.43 billion euros ($1.58 billion), missing analyst
forecasts for 1.88 billion euros in a consensus gathered by the
company.
Revenue rose slightly to 20.32 billion euros, undershooting
estimates for 20.63 billion euros.
The trains to factory software maker said its industrial
operating margin, excluding severance payments, fell to 8.3%
from 10.5% a year earlier.
Gas and Power saw its operating profit plunge 63% during the
first quarter, while Gamesa posted a 165 million euro loss due
to project delays caused by the early onset of wintry weather in
northern Europe.
Still, the company confirmed its guidance of full year earnings
per share in the range of 6.30 to 7.00 euros after posting 1.33
euros during the first quarter.
(Reporting by John Revill, additional reporting by Joern Poltz;
Editing by Michelle Martin)
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