Siemens, the German conglomerate, reported third-quarter earnings broadly in line with expectations but concerns over the detail pushed the shares lower.
The company, whose business ranges from medical equipment to lightbulbs, made pre-tax profits of €1.13bn on its continuing business, an increase of almost 35 per cent, on revenues that were almost 14 per cent higher at €21.2bn.
However analysts were concerned that restructuring costs not booked in the third quarter would be felt in the final quarter.
Severance charges at the company in its communications and IT divisions were €69m, less than expected, but Siemens indicated charges in the fourth quarter would be higher.
In mid-June it announced plans to merge its network equipment division with Nokia’s in a €20bn deal, creating the third-biggest company of its type. The move came in response to shareholder pressure over Siemen’s communications division, which has struggled in recent years along with many of its competitors. It closely followed a merger of Alcatel and Lucent which created the biggest network equipment company, and the acquisition by Ericsson of Marconi’s assets, forming the second-biggest.
Siemens also plans to sell its IT division, SBS.
By contrast Siemens’ medical division is considered more promising and just three weeks ago it agreed to buy Bayer’s diagnostic business for €4.2bn, which sent its share price higher.
However profits reported on Thursday in the medical division were 3 per cent lower, year-on-year, to €233m as revenues declined 4 per cent at €1.84bn, while new orders were also down slightly at €2.09bn.
Mark Wilson, an analyst at Lehman Bros, said this was concerning although the division’s improved order book - 14 per cent higher at €22.44bn - was reassuring.
“But in the near term, we’ve come fom the positive newsflow back to the negative - and that will probably persist to the end of the year.”
The shares were 3.6 per cent lower at €62.27 in late morning trade.