Siemens rewards shareholders as charges weigh down 4Q earnings
Journalists and employees are silhouetted before the Siemens annual news conference in Munich, Germany, Nov. 8, 2018. EPA-EFE/PHILIPP GUELLAND
Siemens AG's Chief Financial Officer (CFO) Ralf Thomas (L) and Siemens Chief Executive Officer (CEO) Joe Kaeser (R) attend the annual news conference in Munich, Germany, Nov. 8, 2018. EPA-EFE/PHILIPP GUELLAND
Madrid, Nov 8 (efe-epa).- Siemens said Thursday that it will raise its dividend and launch a share buyback, even as charges from the restructuring of its power-and-gas business and the carve out of its train-making unit dragged down fourth-quarter earnings, according to a report from Dow Jones Newswires supplied to EFE.
The German conglomerate said net profit fell to 681 million euros ($780.2 million) from 1.28 billion euros a year earlier. Revenue edged up to 22.61 billion euros from 22.30 billion euros.
Analysts had expected net profit of 737 million euros on revenue of 22.91 billion euros, according to a FactSet-compiled consensus.
Munich-based Siemens said it will raise its dividend by 0.10 euros to 3.80 euros a share and launch a 3 billion euros buyback program that will run until Nov. 2021.
The group's industrial businesses booked 482 million euros in severance charges, the bulk of which were concentrated in the power-and-gas division, which swung to a loss this quarter, the Dow Jones report said.
Group earnings were also hit by charges relating to the carve out of Siemens Mobility ahead of the planned merger with Alstom.
However, the majority of industrial divisions posted higher quarterly earnings, leaving overall industrial profit largely flat at 2.15 billion euros.
Siemens issued new guidance for its 2019 fiscal year and now expects a moderate growth in revenue, excluding currency swings and portfolio shifts.
Basic earnings per share should be in the range of 6.30 euros to 7.00 euros, while the industrial business margin should be between 11percent and 12 percent, the company said.
By Nathan Allen