Siemens pins hopes on rail as mfg gloom hits home

2 August, 2019 12:00 AM printer

FRANKFURT AM MAIN: German industrial conglomerate Siemens reported Thursday falling profits in its third quarter across most of its sprawling operations as manufacturers worldwide suffered, but said it could still reach full-year targets.

Net profit fell six percent year-on-year between April and June, to 1.1 billion euros ($1.2 billion), reports AFP.

But revenues at Siemens, which makes products from wind turbines to trains and medical scanners, edged up two percent, to 21.3 billion euros, when adjusted for the effects of its restructuring and exchange rates.

“As indicated already quite some time ago, geopolitics and geoeconomics are harming an otherwise positive investment sentiment,” chief executive Joe Kaeser said.

Germany’s mighty industrial sector is suffering a slowdown as uncertainty over the US-China trade conflict, the risk of a no-deal Brexit and emerging market volatility weigh on demand. Manufacturers of goods like cars, auto components and machine tools have all suffered the effects.

But Kaeser added that a third-quarter bright spot, rail manufacturing, as well as “stringent project execution” would help Siemens stay on track for the end of its financial year in September. Across the group’s divisions, its “digital industries” unit, which offers factory automation equipment and software, saw operating profit tumble 27 percent.