By Nathan Allen
Siemens AG (SIE.XE) said Thursday that its third-quarter earnings dropped slightly on year, weighed down by a substantially higher tax rate and weak profitability at its power-and-gas unit.
The German industrial conglomerate posted net profit of 1.21 billion euros ($1.41 billion) down from EUR1.42 billion a year earlier. Revenue dropped around 4% to EUR20.47 billion, while orders jumped 16% to EUR22.80 billion, Siemens said.
Profit was weighed down by a higher average tax rate and a sharp drop in earnings at Siemens's ailing power-and-gas unit, which posted a margin of 5.4%, down from 9.7% a year earlier, the company said.
However, solid earnings at the digital factory unit helped lift the closely-watched group industrial profit margin to 10.7% from 10.1%.
Unfavorable currency swings knocked around four percentage points off revenue growth, the company said. On a comparable basis, stripping out the effects of currency swings and portfolio shifts, revenue was flat on year.
The group backed its guidance for the 2018 fiscal year.