Siemens said it expects a continued favourable market environment as it reported industrial profit in line with expectations.
The trains-to-turbines maker said it wanted to raise its dividend and launch a new €3 billion share buyback after reporting flat industrial profit of €2.145 billion during its fiscal fourth quarter.
The company’s net profit fell 46 per cent to €681 million during the three months to September 30th, better than the €595 million expected by analysts.
The figure was hit by €301 million in restructuring charges Siemens incurred from job cuts at its troubled power and gas business. The business, which has been hit by a collapse in demand for large gas-powered turbines, chalked up a loss of €139 million during the quarter.
Siemens said the service business did well, but demand continued to slide in its manufacturing side. The business, which competes with General Electric and Mitsubishi Heavy Industries, also has seen falling prices due to over-capacity in the sector. – Reuters
