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Aug. 6, 2020, 2:35 a.m. EDT

Siemens profit nearly halved

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By Kim Richters

Siemens AG on Thursday reported a fall in third-quarter profit, and expects the coronavirus pandemic to strongly hit the final quarter of its fiscal year.

Net profit at the German engineering conglomerate fell to 539 million euros ($639.4 million) for the period ended June 30 from EUR1.03 billion a year earlier.

The result was effected by a loss from Siemens Gamesa Renewable Energy SA and a higher income tax rate, said the company.

At Siemens' industrial business, adjusted earnings before interest, taxes and amortization increased 8% to EUR1.79 billion, partly due to "a strong performance" at Digital Industries, while the adjusted Ebita margin for the division rose to 14.3%. Analysts had expected EUR1.17 billion for the segment's adjusted Ebita.

Siemens said revenue for the quarter was EUR13.49 billion compared with EUR14.24 billion for the year-earlier period. Orders fell to EUR14.40 billion due to the pandemic, Siemens said.

For the fiscal year, it continues to expect a moderate decline in comparable revenue.

"While we expect the economic consequences of the Covid-19 pandemic to continue to strongly impact our fiscal fourth quarter financial results, macroeconomic developments and their influence on Siemens still cannot be reliably assessed," it said.

Write to Kim Richters at kim.richters@wsj.com

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