Both Siemens and Alstom announced Q1 profit drops in midweek.
Siemens, led by CEO Joe Kaeser, posted a slightly larger-than-expected 5 per cent drop in quarterly industrial profit. Although its weak result was primarily due to difficulties with its digital factory unit, its power and gas division profit fell 34 per cent, less than expected.
The company said it would cut an additional 4,500 jobs, or roughly 1 per cent of the global workforce, as it struggles with low demand and price erosion in its core gas turbines business while grappling with a host of other underperforming operations. Half the job cuts will come in Germany.
Meanwhile a US fine for bribery and write-offs on Russian assets pushed France’s Alstom to an $808m annual net loss, a big swing from a big profit in the previous year.
Alstom agreed to pay a record $772 million fine after pleading guilty to settle criminal charges that it funnelled millions of dollars in bribes to win business around the globe.
The company’s income from operations in the year to the end of March rose 19 per cent to EUR318m and sales increased 8 per cent to EUR6.2bn.
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