Siemens cancels billions of Siemens Energy shares

D.Siemens Energy’s recent price losses have hit major shareholder Siemens heavily. A special depreciation will weigh on the post-tax result in the third business quarter by the end of June of around 2.8 billion euros, the Dax Siemens group announced on Thursday evening in Munich.

With a closing price of 13.99 euros on Thursday, the market value of the 35% share is well below book value, Siemens announced. The Munich conglomerate could slide into the red for this period and be forced to cut its annual forecast. The quarterly data and “their effects on the outlook for the current fiscal year” will be released by Siemens on August 11, according to the mandatory announcement published after the close of the stock market.

According to data from Refinitiv, analysts previously expected a net profit of 1.5 billion euros in the third quarter. A Siemens spokesperson declined to comment.

Siemens Energy has long struggled with the problems of the Spanish wind energy subsidiary Siemens Gamesa. In May, the group cut its forecasts and announced the full acquisition of Siemens Gamesa in order to do better there. However, Siemens Energy has lost nearly 40% of its market value since the beginning of the year. The restructuring of the Spanish subsidiary will take years, had warned Christian Bruch, head of Siemens Energy.

In the second quarter, Siemens posted a net profit of 1.2 billion euros, a decline of 49% as the group was hit by sanctions in Russia, among other things. For the full year, Siemens has so far forecast an increase in earnings per share between EUR 8.70 and EUR 9.10. Siemens shares just reacted to the evening’s news in after-hour trading on the Tradegate platform.


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