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Siemens Q2 Profit, Orders Down; Warns On Q3; Not To Confirm FY20 Earnings View

Siemens AG (SIEGY.PK,SMAWF) reported Friday that its second-quarter net income plunged 64 percent to 697 million euros from last year's 1.92 billion euros.

Basic earnings per share were 0.80 euros, down from 2.24 euros a year ago.

Income from continuing operations fell 41 percent from last year to 1.01 billion euros.

Adjusted EBITA Industrial Businesses declined 18 percent to 1.59 billion euros, and adjusted EBITA margin Industrial Businesses dropped to 12.1 percent from prior year's 14.7 percent.

Revenues were 14.225 billion euros, nearly flat with last year's 14.245 billion euros. On a comparable basis, revenues dropped 1 percent.

Orders were 15.15 billion euros, down 8 percent on a reported basis and down 9 percent on a comparable basis.

Despite the coronavirus or COVID-19 pandemic, Siemens was able to operate production sites and supply chains near normal levels in the quarter, but volume and income were hurt by a decline in demand and restricted access to customer sites in affected regions.

Looking ahead for the third quarter, the company said it expects stronger adverse impacts on the macroeconomic environment from COVID-19 to widen.

Beyond the third quarter of fiscal 2020, macroeconomic developments and their influence on Siemens currently cannot be reliably assessed. Therefore, the company said it can no longer confirm original earnings guidance for fiscal 2020.

The company said it now expects a moderate decline in comparable revenue in fiscal year 2020, net of currency translation and portfolio effects.

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