German engineering group Siemens reported a worse-than-expected 10% drop in industrial profit for its fiscal fourth quarter as its large gas turbines unit struggled with price pressure and over capacity.
Industrial profit came in at €2.2bn for the quarter to end of September, below the lowest estimate in a Reuters poll of analysts, whose forecasts averaged €4.94bn.
Profit at the Power and Gas division, Siemens second biggest after healthcare, plummeted 40% to €303m, including €70m of positive inventory effects. Siemens is about to embark on a restructuring of the unit, according to Reuters.
“We have to tackle structural issues in some individual businesses,” CEO Joe Kaeser said. “There is a lot of work ahead of us in fiscal 2018”
Siemens is set to conclude internal preparations to IPO its health care unit by the end of March of next year, the chief executive officer told CNBC.