BERLIN, Aug. 1 (Xinhua) -- Turnover of Siemens increased year-on-year by 2 percent to a total of 21.3 billion euros (23.5 billion U.S. dollars) in the third quarter (Q3) of fiscal year 2019, the German tech giant announced on Thursday.
Net profits of the Munich-based company amounted to 1.1 billion euros from April to June 2019, marking a decline of 6 percent compared to the same period last year, Siemens announced.
"As indicated already quite some time ago, geopolitics and geoeconomics are harming an otherwise positive investment sentiment," said Joe Kaeser, chief executive officer (CEO) of Siemens.
Adjusted operational profits (EBITA) of Siemens' important industrial businesses, such as the renewable energy division Gamesa, Siemens Gas and Power as well as the Mobility division, saw a decline of 12 percent to a total of 1.9 billion euros.
The adjusted EBITA margin of Siemens' industrial businesses had also been "held back by severance charges" and stood at 9.6 percent in Q3, according to the German company.
Meanwhile, order intake at Siemens had increased by 6 percent to a record level of 144 billion euros' worth of incoming orders in Q3 of fiscal year 2019.
Siemens' Mobility division obtained a 1.2-billion-euro contract for high-speed trains in Russia, the German tech company noted.
"Despite a significantly weaker environment in our key markets, we confirm our outlook for the year," emphasized Kaeser.
Siemens is currently expecting that it would become "more challenging" to fulfill its business expectation of "moderate growth in revenue, net of currency translation and portfolio effects" in the remainder of the fiscal year.
The German tech company was anticipating the adjusted EBIT margin for its industrial businesses to be in the range of 11 to 12 percent for the entire fiscal year 2019.
Investors were disappointed by the Q3 results as Siemens shares declined by around 5 percent and were the biggest loser in the German stock index DAX on Thursday morning.
