By Ed Frankl
Siemens AG said Thursday it would exit its business in Russia, hitting its second quarter earnings.
The German industrial firm said its second quarter revenue was affected by nearly 600 million euros ($ 630.9 million) due to damages and other charges related to Russia, particularly in terms of its operations.
Siemens ’net revenue decreased in the January-March period as a result, falling to EUR1.21 billion from EUR2.39 billion last year. Last year’s figure also included a EUR900 million profit from the sale of Flender to The Carlyle Group.
The net-profit figure is below the expected EUR1.73 billion, according to analyst estimates provided by the company.
However, revenue rose 16% to EUR17.04 billion, while orders jumped 32% to EUR20.98 billion, both above consensus views.
The company said it avoided major disruptions from further supply chain risks related to electronic components, raw materials and logistics.
Siemens has confirmed its vision for 2022.
Write to Ed Frankl at [email protected]