Siemens to leave Russia due to Ukraine war, take hefty charge – CNBC

Siemens will quit the Russian market due to the war in Ukraine, it said on Thursday, as losses and charges at its train-making business led to a downturn in profit during its second quarter.

“We join the international community in condemning the war in Ukraine and are focused on supporting our people and providing humanitarian aid,” said Chief Executive Roland Busch in a statement.

“Today, we announced our decision to carry out an orderly process to wind down our industrial business activities in Russia,” he added.

The German company employs around 3,000 people in Russia and had previously decided to not take on new projects after the invasion, which Moscow calls a special operation.

Siemens said its net income halved to 1.21 billion euros ($1.27 billion) in the three months to the end of March as the company was hit by 600 million euros in charges and impairments as the Russian situation took its toll its mobility business.

Profit was also down compared with a year earlier when the figures were boosted by the 900 million euro gain Siemens made from selling gearbox maker Flender.

Original News Source Link

Leave a Comment