Siemens Says Automation Beats Forecasts as Renewables Lag

Siemens AG, Europe’s largest engineering company, said its industrial-automation business remains stable at a “high level” while earnings growth continues to be hampered at its renewable-energy units.

Counter to the company’s forecasts at the beginning of the fiscal year, Siemens’s industrial-automation division hasn’t suffered from slowing economies in Europe and China, said Wolfram Trost, a spokesman at the Munich-based manufacturer. Trost was confirming comments Chief Financial Officer Joe Kaeser made in an interview with Euro am Sonntag. Some operations at the division are performing better than last year, Euro am Sonntag cited Kaeser as saying.

Renewable-energy projects will continue to weigh on finances for some time and will also affect the power-transmission unit, Kaeser said, according to the weekly newspaper. Siemens booked 203 million euros ($266 million) in charges in its most recent quarter at the power-transmission division amid delays connecting offshore wind parks to the power grid.

Siemens fell as much as 1.6 percent to 72.70 euros and was trading down 0.6 percent at 10:42 a.m. in Frankfurt. The stock has declined 0.6 percent this year.

The company is forecasting net income from continuing operations of about 6 billion euros for the fiscal year ending Sept. 30. Siemens is sticking to its predictions, Euro am Sonntag cited Kaeser as saying. Analysts on average expect Siemens to post profit of 5.61 billion euros, according to estimates compiled by Bloomberg.

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