Siemens reports profit up, extends CEO’s contract
Industrial equipment maker Siemens AG said Thursday net profit for the most recent quarter rose 7 percent to 1.46 billion euros, or $1.72 billion.
Company leaders said profit in the April-June period rose despite costs for the merger of its wind power business with Gamesa Corporacion Tecnologica SA.
Orders fell 6 percent because of fewer big-ticket jobs, particularly in wind power and the company’s power and gas business. That is a key figure for future profits because the company deals in large industrial projects that take months or years to complete.
The Germany company also said it planned an initial public offering of shares in its medical equipment business during 2018.
Siemens AG is the parent company of Siemens USA Corp., which until last year was headed by Mahoning Valley native and Poland Seminary High School graduate Eric A. Spiegel. Siemens USA is a primary investor in the Lordstown Energy Center under construction along Henn Parkway in Lordstown. The company is also expected to help finance the proposed Trumbull Energy Center.
Siemens AG also on Thursday announced an extension of CEO Joe Kaeser’s contract until 2021.
Kaeser said the company “did not exclude further measures” in response to the reported diversion of four power turbines sold to Russia to Crimea. The European Union in 2014 imposed economic sanctions on Russia over the annexation of Ukraine’s Crimean region, including a ban on exporting power generation equipment there.
Kaeser said the Crimea issue “has cost us much time and effort” and that it was “unacceptable” that a contract would be violated “in criminal fashion.” However, he said that “it would be disproportionate to put an entire country, including loyal and reliable customers, under blanket suspicion.”
Siemens businesses include trains, power generation and transmission equipment, and medical imaging devices.