Siemens swings to loss in June quarter as sales decline

Moneylife Digital Team 02 August 2013

Macro-economic concerns, currency volatility and project-related provision affected Siemens’ net profit as well as sales. It is also hiving off two subsidiary companies for Rs122.8 crore

Siemens Ltd, a unit of German Siemens AG, swung to third quarter net loss on uncertain macro-economic situation as well as volatility in the Indian currency and commodity exchange rates.

For the quarter to end-June, the Indian unit of engineering giant Siemens AG, reported a net loss of Rs48.8 crore from a net profit of Rs36.2 crore while its total revenues including sales, fall to Rs2,645.2 crore from Rs2,856.2 crore same period last year. During the quarter the company’s sales fell to Rs2,588.4 crore from Rs2,979.4 crore a year ago period.

Dr Armin Bruck, managing director, Siemens, said, “Our results have been impacted by the uncertain macro-economic situation as well as volatility in the currency and commodity exchange rates. It is imperative now that concrete steps are taken to create an environment that will encourage growth in the country through increased capex expenditure.”

The board of directors, in its meeting held on 2nd August, approved sale and transfer of the company’s divisions, postal and parcel logistics technologies and airport logistics technologies (both forming part of the infrastructure and cities sector), to Siemens Airport Logistics Technologies Private Ltd, a 100% subsidiary of Siemens AG, for Rs122.8 crore.

Siemens closed Friday 5.9% down at Rs451.4 on the BSE while the benchmark Sensex ended the day marginally down at 19,164.

Comments

User

vivek shah

1 decade ago

If a company of the stature of Siemens reports losses there are systemic faults in our country. The same goes with the likes of BHEL, L&T and ABB where they have reported below par results. The sooner the policy paralysis ends the better for the countyr. Our country certainly deserves a better government.