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Siemens (OTCPK:SIEGY) said Thursday it expects to book a ~€2.8B impairment ($2.92B) against Q3 net income on its 35% investment in Siemens Energy (OTCPK:SMEGF), whose market value has dropped significantly below the book value.
Analysts had expected Siemens (OTCPK:SIEGY) to post a €1.5B net profit in its Q3, which ends today, according to Reuters.
Siemens Energy (OTCPK:SMEGF) has suffered a difficult two years since its separation, with executives voicing disappointment with the company's performance, particularly at its Siemens Gamesa wind turbine unit.
Siemens (OTCPK:SIEGY) said Q3 results will be released on August 11, when it will elaborate on "their consequences on the outlook for the current financial year."
Earlier this week, Siemens (OTCPK:SIEGY) said it would invest $100M-plus in Volkswagen's U.S. electric vehicle charging network.