Siemens misses its profit forecasts as it prepares a spin-off of Healthineers

Siemens announced Thursday that its industrial profit was slightly lower than analyst expectations for its fourth quarter after it announced plans to reduce its share in Siemens Healthineers.

Siemens, which produces everything from industrial software to trains to trains themselves, reported that its industrial profit grew 2%, to 3,19 billion euros, in the three-month period ending September. This was below the consensus forecast of 3.32 billion euro, according to a survey of the company.

Sales increased by 3%, to 21,43 billion euros. This was in line with expectations. However, net income, at 1,84 billion, fell short of the forecasted 2,18 billion euro.

The results were announced after Siemens said late on Wednesday that it would reduce its share in Siemens Healthineers, from 67% to just 37%. This was done by transferring its shares to investors.

Investors wanted Siemens Healthineers to focus more on industrial automation and building automation.

Roland Busch, CEO of Siemens, said that the recent acquisitions by Siemens of Altair Dotmatics and Dotmatics would expand its leadership position in artificial intelligence software.

Busch stated in a press release that "with our ONE Tech Company program, we are laying a foundation for an even stronger focus on customers, faster innovation and higher profitable growth."

(source: Reuters)