Siemens Shares Fall After Profit Misses Estimates: Frankfurt Mover
Siemens AG (SIE) (SIE) declined by the most in almost five months in Frankfurt trading after Germany’s largest engineering company reported fiscal first-quarter earnings that missed analysts’ estimates and cautioned that its profit targets for the full year have become more challenging to reach.
Siemens, based in Munich, fell as much as 3.53 euros, or 4.5 percent, to 75 euros in Frankfurt, the biggest drop since Sept. 5, and closed at 77.15 euros. The company has the second- biggest weighting on Germany’s benchmark DAX 30 index, which fell as much as 1.5 percent.
Siemens booked 203 million euros ($265 million) in charges at its power transmission division amid delays in connecting five offshore wind parks to the power grid, causing the unit to post a loss. Siemens also had a loss at its renewable energy division.
“There is some frustration in wind power,” Chief Financial Officer Joe Kaeser said on a conference call. “It runs through the whole company, it’s seen in renewable energy, in power transmission, and in drives technology.”
Shares of ABB Ltd. (ABBN) fell as much as 0.82 Swiss francs, or 4.1 percent, to 19.03 francs in Zurich on the back of Siemens’s results, making them the worst performer in Switzerland’s benchmark SMI index. ABB is the world’s largest maker of power- transmission gear and one of Siemens’ closest competitors.
Siemens is betting on better business in the second half to reach its goals for the fiscal year ending Sept. 30, which call for “moderate organic sales growth” and net income from continuing operations of about 6 billion euros.
To contact the reporter on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net
To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net
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