BERLIN, May 8 (Xinhua) -- Net income of Siemens dropped by 64 percent to 697 million euros (755 million U.S dollars) year-on-year in the second quarter of the fiscal year 2020, the German technology giant announced on Friday.
Adjusted earnings before interest, taxes, and amortization (EBITA) of Siemens industrial businesses was "significantly lower" than last year and fell 18 percent to 1.6 billion euros, as "all industrial businesses showing effects from the COVID -19 pandemic," according to Siemens.
"We delivered a robust quarter given the serious circumstances," said Joe Kaeser, president and chief executive officer (CEO) of Siemens.
With 14.2 billion euros, revenues were "nearly level with the same quarter a year ago," as increases at Siemens Healthineers and Mobility had offset a decline at its digital business, according to the company.
Given the current situation, Siemens could no longer confirm the original guidance for the fiscal year 2020, expecting "even stronger impacts from the pandemic on business development in our fiscal third quarter," according to the company.
"While we expect to reach the bottom in the third quarter of fiscal 2020, we continue to keep the health and safety of our partners and employees as our first priority, while maintaining business continuity as much as responsibly possible," said Kaeser.
However, Siemens was "very well prepared," in particular in terms of financing, to meet the challenges that COVID-19 would be posing in the coming months.
"The company has a strong rating and a very solid liquidity position," said Ralf Thomas, chief financial officer of Siemens. "If needed, we have direct access to more than 11.4 billion euros in net liquidity." Enditem