SIEGY - Siemens swings to Q3 loss after writedowns cuts full-year EPS guidance

Siemens ( OTCPK:SIEGY ) on Thursday cut its full-year earnings guidance after reporting its first quarterly loss since Q4 2010 .

Siemens ( OTCPK:SIEGY ) said FQ3 swung to a net loss of €1.66B ($1.71B), much larger than a €532M loss forecast in consensus estimates provided by the company, compared to a profit of €1.35B in the year-earlier quarter, after taking a €2.8B impairment on its 35% stake in Siemens Energy ( OTCPK:SMEGF ) as well as €442M in charges related to its exit from Russia due to the invasion of Ukraine.

The company said Q3 revenues rose 11% to €17.87B ($18.38B) from €16.09B in the prior-year period and beating analyst consensus of €17.47B; orders rose 7% to €22.07B following a 32% increase in orders in the previous quarter.

For the full fiscal year, Siemens ( OTCPK:SIEGY ) slashed guidance for basic earnings to €5.33-€5.73/share from €8.70-€9.10 previously, while confirming its target of 6%-8% growth in comparable revenue.

CEO Roland Busch said demand was still strong, despite high inflation, sanctions on Russia and ongoing effects from the pandemic, with no signs of a recession .

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