SIEGY - Siemens scores Euro1.59B accounting gain on Siemens Energy investment

2023-03-31 17:25:31 ET

Siemens ( OTCPK:SIEGY ) said Friday it will reverse some of the impairment it took on its stake in Siemens Energy ( OTCPK:SMEGF ), leading to a €1.59B (~$1.73B) after-tax net income improvement at the end of its FQ2.

Siemens ( OTCPK:SIEGY ), which owns about a third of Siemens Energy ( OTCPK:SMEGF ), said the energy company's closing share price of €20.24 on March 31 is significantly higher than the closing share price of €13.99 on June 30, when it reported an impairment, resulting in the impairment reversal at the end of the quarter that ends Friday.

The company initially took a €2.8B impairment hit to reflect the declining value of its stake in Siemens Energy ( OTCPK:SMEGF ).

Siemens ( OTCPK:SIEGY ) is a great business but the stock is still expensive, Wolf Report writes in an analysis posted recently on Seeking Alpha .

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