Quarterly figures: Siemens discontinues business in Russia

The lettering logo of the German industrial group Siemens
Image: dpa

The Dax group from Munich is withdrawing from the Russian market after around 170 years. The company announced this on Thursday. The sanctions against the country are also reflected in the numbers.

Siemens is feeling the effects of the sanctions against Russia. On Thursday, the Munich technology giant estimated the burden on profits in the second quarter of the 2021/22 financial year at around 600 million euros; the train business in particular suffered from depreciation and made a loss. At 1.8 billion euros, the profit in the industrial business was below the expectations of the analysts, who had predicted almost 2.4 billion euros.

On the other hand, global demand for Siemens products remains high. Order intake improved by a third to 21 billion euros. Sales increased by 16 percent to a good 17 billion euros, significantly exceeding the expectations of the analysts surveyed by Siemens. Siemens boss Roland Busch spoke of an extremely difficult environment. Nevertheless, a strong operational performance was achieved. Busch is sticking to the forecast for the year as a whole.

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After around 170 years, Siemens is moving out Russia return. The company has initiated procedures to cease its industrial operations and all industrial business activities. After the Russian invasion of Ukraine, new business had already been discontinued. “We condemn the war in Ukraine and have decided to end our industrial business activities in Russia in an orderly process,” said Busch. Siemens recently generated around one percent of its total sales in Russia.

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