Siemens drops revenue target over virus impact

FRANKFURT AM MAIN (AFP) – German industrial conglomerate Siemens yesterday withdrew its 2020 revenue targets, saying the coronavirus pandemic would weigh heavily on sales in its April-June quarter.

“We expect a moderate decline in comparable revenue in fiscal year 2020,” Siemens said in a statement, as it reported net profits down by an annualised 64 per cent in January-March, at EUR697 million (USD755.77 million).

Chief Executive Joe Kaeser hailed a “robust quarter given the circumstances”, forecasting the group would “reach the bottom in the third quarter of fiscal 2020”. Over the past quarter, “despite the coronavirus pandemic, Siemens was able to operate production sites and supply chains near normal levels,” the group said.

But “a decline in demand and restricted access to customer sites in affected regions” sapped both activity and financial flows over the quarter, it added.

Addressing the coronavirus’ impact directly, Kaeser said in a telephone conference that “it’s too early to give an estimate of how long this situation will last and when the global economy will recover.”