Siemens announces withdrawal from Russia, Mobility division takes hit
Siemens announced its withdrawal from the Russian market on Thursday during the presentation of its quarterly results. Siemens Mobility, already heavily impacted following international sanctions on Russia, will likely take the biggest hit.
Siemens’ departure from Russia brings to an end a period of 170 years of activities in the country. The local market was already under strain following international sanctions over the invasion of Ukraine.
“Subsequent to sanctions imposed on Russia, revenue development primarily in the rolling stock and the customer services businesses was impacted by a reduction of revenue”, Siemens said in its report.
The Siemens Mobility division recorded 600 million euros in impairments and charges in the second quarter, which weighed heavily on the group’s results. Siemens’ net income was cut in half to 1,2 billion euros, while Mobility recorded a 369-million-euro loss.
Siemens’ exit from Russia calls into question the future viability of the Sapsan high-speed trains manufactured and serviced by Siemens Mobility. The company also produces the Lastochka electric trains as part of the Ural Locomotives joint venture with Sinara Group.
While Siemens as a whole confirmed its financial targets for this it warned that revenue at its Mobility division, which was forecast to grow by as much as 8 percent, will return to last year’s level.
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