Accounting gain helps Siemens beat profit forecasts

Siemens CEO Joe Kaeser and deputy CEO Roland Busch said the German engineering group’s strong showing came despite factory shutdowns. (Reuters)
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Updated 07 August 2020

Accounting gain helps Siemens beat profit forecasts

ZURICH: Siemens posted better-than-expected industrial profit for its third quarter as the German engineering group weathered the effects of the coronavirus pandemic.

Orders and revenue both fell during the three months to the end of June, but the trains to industrial software maker still increased the operating profit of its industrial business, helped by an accounting gain and savings to deal with the coronavirus pandemic downturn.

Siemens said adjusted industrial profit for the three months to the end of June rose 8 percent to €1.79 billion ($2.13 billion), beating analyst forecasts for €1.17 billion in a company-gathered consensus.

The result was helped by a €211 million gain in the valuation of Siemens’ stake in US industrial software company Bentley Systems, which offset declines elsewhere.

HIGHLIGHTS

Operating profit increases, beats forecasts.

Valuation gain in US software business.

Coronavirus to have strong impact in next quarter.

“Despite the severe global crisis, we delivered strong operating performance,” CEO Joe Kaeser said in a statement.

Siemens had previously warned that it expected the COVID-19 outbreak to have big impact on its results on its third quarter when it abandoned its full-year guidance and announced it was speeding up its existing cost-cutting plan in May.

Like other industrial companies, including France’s Schneider Electric and Switzerland’s ABB, Siemens has been hit by factory and office shutdowns introduced to prevent the spread of the coronavirus.

On Thursday Siemens, which is due to spin off its gas turbine business next month into a new company called Siemens Energy, said its third quarter revenues fell 5 percent to €13.49 billion, beating forecasts for €12.75 billion.

As a result shareholder’s net income halved to €539 million, although far ahead of the €51 million expected by analysts.

The Munich company said it still expected the pandemic to “strongly impact” its business during in its next quarter, adding it expected a moderate decline in full year revenues. 


Investment in reskilling will create new jobs as AI takes over, Global AI Summit hears 

Updated 4 min 6 sec ago

Investment in reskilling will create new jobs as AI takes over, Global AI Summit hears 

  • AI is expected to displace 73 million jobs globally by 2022
  • AI could also create 130 million new jobs that require new skills

DUBAI: Investing in reskilling workers will help create new jobs as Artificial Intelligence takes over, The Global AI Summit “AI for the Good of Humanity” in Riyadh heard on Thursday. 
CEO of Saudi Telecom Group, Nasser Sulaiman Al-Nasser, believes that although AI is expected to displace 73 million jobs globally by 2022, with investment of reskilling employees, it could create 130 million jobs. 
“Our government (Saudi Arabia) is prioritizing and investing in education,” Nasser said, explaining that this is an important part of reskilling individuals in preparation for the use of AI in industries. 
Nasser told an audience at the summit that AI will replace tedious jobs but in turn, will create new jobs that require new skills. 
“We have to look at AI from two perspectives; from the enablement part and from the potential (it has),” he said, explaining that it is more than just a technology, but rather an eco-system. 
One of the pillars of the AI ecosystem, Nasser said, is partnerships with tech providers and industries. 
Digital Transformation Adviser, Anett Numa, said during the summit that the public sector and the government need to be leading in the development of AI with the help of academia and the private sector for efficient results.