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Siemens industrial profit dives 10 percent as turbines business tanks

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Siemens industrial profit dives 10 percent as turbines business tanks

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MUNICH (Reuters) – German engineering group Siemens <SIEGn.DE> reported a worse-than-expected 10 percent drop in industrial profit for its fiscal fourth quarter as its large gas-turbines unit struggled with price pressure and overcapacity. Industrial profit came in at 2.2 billion euros (1.94 billion pounds) for the quarter to end-September, below the lowest estimate in a Reuters poll of analysts, whose forecasts averaged 4.94 billion euros. Profit at the Power and Gas unit, Siemens’ second-biggest after healthcare, plunged 40 percent to 303 million euros, including 70 million euros of positive inventory effects. Siemens is about to embark on a restructuring of the unit. “We have to tackle structural issues in some individual businesses,” Chief Executive Joe Kaeser said in a statement on Thursday. “There is a lot of work ahead of us in fiscal 2018.”

(Reporting by Georgina Prodhan; Editing by Maria Sheahan)
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