MUNICH - German engineering company Siemens (SIEGn.DE) reported a worse than expected 10 percent drop in quarterly industrial profit and signaled a tough year ahead as it restructures its turbine and wind power businesses.
Siemens is shedding operations as it seeks to shrug off its conglomerate structure and remodel itself as an industrial software company. It is listing its healthcare unit and putting its wind and rail businesses into joint ventures.
But its results were dragged down by the large gas turbines that are increasingly unloved in a world moving to renewable energy, and setbacks at its Siemens Gamesa (SGREN.MC) wind energy joint venture.
Industrial profit came in at 2.2 billion euros ($2.6 billion) for the quarter to the end of September, below the lowest estimate in a Reuters poll of analysts, in which forecasts averaged 2.49 billion euros.