Poor numbers on the day of the meeting: The electronics giant Siemens shocked its shareholders with a drop in profits in the first quarter. Problem child is the power plant and gas business. Now must Siemens CEO Joe Kaeser act.
The Siemens Group has to adjust to expensive challenges in key energy business. The division for electricity and gas turbines need “a much more far-reaching approach to long-term return to the previous margins,” said Siemens CEO Joe Kaeser on Tuesday the Annual General Meeting in Munich. Also in the medical business, which will become independent, it was not round.
Only 1.1 billion quarterly profit
The bottom line Siemens earned from October to December almost 1.1 billion euros, a quarter less than in the same period last year. The orders were up 13 per cent on the previous year, the one billion dollar Metro had contain -Order in Saudi Arabia. Sales at Siemens increase in the first quarter by three percent to 17.4 billion euros.
In operational terms it was different for the Munich in the individual business lines. While business with energy transfer technology and wind turbines growled, had medical technology and the power plant and gas sector (power & amp; gas) to face downturns. The division has to deal with the consequences of falling oil prices. Siemens wants to date already cut about 1,200 positions in the business field
Problems with billion takeover
In addition, a billion deal prepares in the US difficulties. The acquisition of US-turbine specialists Dresser- edge could be an expensive problem for the electric company. But there was no need for depreciation, said Chief Financial Officer Ralf Thomas. Neither the weak Euro or by the decline in oil prices, there would be changes in the measurement