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The profit of Siemens Q3 2020

Trade activity in China has recovered rapidly since the onset of the coronavirus health crisis, the CEO of one of Europe’s largest manufacturers said on Thursday.

“China has been able to recover very, very quickly from the origins of the crisis. In our business, China is actually higher than last year, so we’ve seen more demand than before the crisis, “Joe Kaiser, CEO of Siemens, told Annette Weisbach of CNBC.

Between April and June, Chinese orders rose 6% from a year ago. All other jurisdictions in which Siemens operates, with the exception of Germany, saw a decrease in the number of orders for the same period.

Siemens reported Thursday̵

7;s net income of 535 million euros ($ 635 million) for the three months to June. This represents a decrease of 53% compared to a year ago. Despite the challenging economic environment, Siemens also said higher income taxes are contributing to declining profits.

Other highlights for the quarter:

  • Revenues reached 13.5 billion euros – 5% lower than a year ago.
  • Free cash flow jumped to 2.5 billion euros from 434 million euros a year ago.

“All units, but especially Siemens Mobility, have contributed to this significant improvement,” the German company said in a statement for a 200% cash flow jump. This was supported by the step to suspend some operations, which led to a positive free cash flow of 433 million euros and a number of asset management measures in Siemens Energy, the statement said.

For the rest of the year, Siemens expects the ongoing economic crisis as a result of the coronavirus pandemic to continue to affect its business.

“Moving forward, there is some instability related to the likelihood that we will see a second wave,” Kaiser said.

However, the company still plans to complete the spin-off and public listing of Siemens Energy before the end of its fiscal year.

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