FRANKFURT (Reuters) -Siemens said on Thursday it was booking a writedown that will result in a 2.8 billion euro ($2.93 billion) impact on the German engineering company’s third quarter net income.
The impairment is related to the fall in the value of Siemens Energy, which is 35% by Siemens AG after the spin off in 2020.
Siemens Energy has had a troubled first two years since the separation, with Siemens executives frequently voicing disappointment with the company’s performance, particularly at its wind turbine unit Siemens Gamesa.
Siemens Energy also warned in April that its own trading environment had become more difficult due to the war in Ukraine and sanctions imposed on Russia.
A Siemens AG spokesperson declined to comment further.
Analysts had expected Siemens AG to post a net profit of 1.5 billion euros in its third quarter, which ends on Thursday, according to Refinitiv data.
Siemens said that results for the quarter were due on Aug. 11 and that it would then elaborate on “their consequences on the outlook for the current financial year”.
($1 = 0.9544 euros)
(Reporting by Tom SimsEditing by Chris Reese and John Revill)
