By John Revill
ZURICH, May 13 (Reuters) – Siemens reported weaker than expected second quarter earnings on Wednesday, although future orders increased despite the German engineering group highlighting a “very demanding” geopolitical environment.
The trains to industrial software maker said its sales in the three months to the end of March were flat at 19.76 billion euros, missing forecasts for 20.14 billion euros ($23.63 billion)in a company-gathered consensus of analysts.
Industrial profit fell 8% to 2.97 billion euros, missing forecasts for 3.046 billion euros, after the company booked a 300 million euro gain from selling its wiring business last year, which caused a decline in profit margins.
Net profit fell to 2.24 billion euros, beating forecasts for 2.13 billion euros, while orders rose by 11%.
The results of Siemens, a key supplier to industry and infrastructure, are seen as giving an insight into the health of the broader global economy.
“We delivered a successful second quarter despite the geopolitical environment, which remains very demanding,” said Chief Executive Roland Busch.
($1 = 0.8523 euros)
(Reporting by John Revill, Editing by Linda Pasquini)
