ZURICH (Reuters) – Siemens reported better than expected profit for its latest quarter on Thursday, despite continued struggles at its factory automation business.
The German company saw a “significant decline” at its factory automation business – which makes industrial software and control systems – in the three months to the end of December, with revenues lower in all regions apart from the Americas.
As a result, Siemens reported an 8% drop in industrial profit to 2.52 billion euros ($2.63 billion), beating forecasts for 2.44 billion euros in a consensus of analysts provided by the company.
Still, revenue increased 3% to 13.35 billion euros, beating forecasts for 18.02 billion euros, and orders – albeit lower than a year earlier – also came in ahead of forecasts.
The biggest sore spot for Siemens was the ongoing weakness in its flagship digital industries division, which saw revenue fall 11% and profit down 34%.
The downturn followed a 46% plunge in profit during the prior quarter as the automation business struggled.
The business, which makes factory automation, software and controllers, has been particularly hurt by a downturn in China and Germany as the economies in both countries have struggled and manufacturers have held off on investments.
($1 = 0.9587 euros)
(Reporting by John Revill, editing by Rachel More)
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