Siemens AG said it will reverse some of the impairment it took on its stake in Siemens Energy AG, leading to an income boost after tax of €1.59 billion ($1.73 billion) at the end of the second fiscal quarter.
(Bloomberg) — Siemens AG said it will reverse some of the impairment it took on its stake in Siemens Energy AG, leading to an income boost after tax of €1.59 billion ($1.73 billion) at the end of the second fiscal quarter.
Siemens Energy’s closing share price on March 31 is significantly higher — about 45% — than the price on June 30 last year, when Siemens reported the impairment, the Munich-based company said in a statement on Friday.
Siemens initially took a €2.8 billion hit to reflect the declining value of its stake in Siemens Energy following the turbine maker’s repeated profit warnings. Siemens owns about one-third of the company.
The income effect from the impairment reversal isn’t part of the outlook for the current fiscal year, according to Siemens. Financial results for the quarter through March are scheduled to be published on May 17.
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