The German conglomerate was hit hard by the rising cost of raw materials and the withdrawal of its business from Russia.
The German industrial group Siemens has published a financial report where it has recorded a quarterly loss of 1,500 million euros (about 1,545 million dollars), after being forced to make a multi-million dollar downgrade in its energy business and due to the end of its operations in Russia, reports the Financial Times. Thus, the company registered its first quarterly loss in nearly 12 years.
It should be noted that it recorded a profit of 1,400 million euros in the same period of the previous year.
Gamesa, the world’s largest wind turbine manufacturer, and a subsidiary of Siemens Energy, has had problems with wind turbine contracts due to rising raw material costs. In May, Siemens Energy made an offer to buy all of the Gamesa shares it did not yet control, 33%, as the Munich-based company wanted to fully control the company during the tough times.
Meanwhile, the firm’s management is optimistic, despite current losses. “We have the right offering and strategy to succeed even in uncertain times,” said Roland Busch, President and CEO of Siemens AG. The report also pays attention to the fact that in most subsidiaries profits increased.