Siemens Drops as Oil Price Slump Hurts Profitability, Sales
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Siemens AG shares fell the most in seven weeks after Chief Executive Officer Joe Kaeser told investors that the falling oil price and operational difficulties are hurting profit and sales of Europe’s biggest engineering company.
Weakening demand for offerings such as gas turbines and oilfield equipment will lead to a “moderate organic revenue decline” in the second quarter, Kaeser said at a conference in London. Operational difficulties at the wind power and process industries units are likely to drag on the profitability of Siemens’ industrial business that quarter, he said.