Siemens Energy Posts Profit In Q1, Orders Down, Backs View; To Cut 7,800 Jobs In Gas And Power Unit

Siemens Energy AG (SMEGF.PK SMNEY.PK) reported Tuesday that its first-quarter net income was 99 million euros, compared to last year's loss of 195 million euros.

Basic earnings per share were 0.09 euro, compared to loss of 0.19 euro last year.

Adjusted EBITA was 243 million euros, compared to loss of 117 million euros last year. EBITDA grew to 507 million euros from 87 million euros last year.

Revenue increased 2.6 percent to 6.54 billion euros from 6.37 billion euros a year ago. On a comparable basis, revenue rose by nearly 8 percent.

Orders plunged 25.9 percent to 7.43 billion euros from 10.03 billion euros last year, driven by a sharp decline at Siemens Gamesa Renewable Energy.

Further, the company confirmed its outlook for fiscal year 2021. The company continues to expect nominal revenue growth rate to be in the range of 2 percent to 12 percent, an Adjusted EBITA margin before special items of 3 percent to 5 percent, a sharp increase in Net income and a sharp decrease of Free cash flow pre tax.

Separately, Siemens Energy announced plans to reduce current global workforce until 2025 by about 7,800 jobs in its Gas and Power segment.

The proposed measures impact approximately 3,000 in Germany; 1,700 in the United States; and 3,100 at other locations around the world.

The reductions are planned by the end of the 2025 financial year, with a large part to be implemented by the end of the 2023 financial year.

The job cuts are part of its previously announced plans to reduce costs by a minimum of 300 million euros in its Gas and Power segment.

Non-recurring costs associated with the proposed job reductions will amount cumulatively to a mid to high triple digit million euro in line with previous guidance.

Further, the company reconfirmed plans to achieve an Adjusted EBITA margin before special items of 6.5 percent to 8.5 percent by 2023.

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