Siemens Energy's profits are expected to be hit by tariffs of less than $113 million.

Siemens Energy, a maker of power equipment, said on Thursday that it expected a loss of profits of less than $100 million euros (113 million dollars) in the rest of its fiscal year. This was the first time Siemens had quantified the impact of the U.S. tariffs.

In presentation slides, the group also detailed some of its plans to mitigate the impact of the duties. These included raising the prices of new orders placed in the United States, and finding alternative suppliers of parts that it must import.

Siemens Energy has eight production sites in the United States, which produce everything from gas and wind turbines to electrical grid equipment.

After mitigation measures, Siemens Energy expects a limited impact of up to high double-digit millions of euros on its profit for the second half fiscal year 2025. This refers to the six month period from April to Septembre.

Siemens Energy's net profit also nearly five-folded to 501 millions euros in its second fiscal quarter, which ended in March. This was a significant improvement over the average estimate of 217 million euros that LSEG banks and brokerages had made.

Last month, the group released its preliminary results for January-March. This was their best quarter since they were spun off by former parent Siemens AG 2020. Reporting by Christoph Steitz, Editing by Chizu Nomiyama & Ludwig Burger

(source: Reuters)