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By John Revill
MUNICH - Siemens reported better-than-expected adjusted operating profit from its industrial business during its second quarter on Wednesday as the German industrial giant began the process of separating and spinning off its struggling power and gas business.
The trains to industrial turbines maker said its industrial profit rose 7 percent to 2.4 billion euros ($2.69 billion) in the three months that ended March 31, beating estimates of 2.24 billion euros in an Infront data poll.
Revenue rose 4 percent to 20.94 billion euros, matching estimates, while orders rose 6 percent to 23.61 billion euros. The company confirmed its outlook for its 2019 fiscal year, saying it expected a profit margin of 11 to 12 percent for its industrial business and a basic earnings per share from net income of 6.30 to 7.00 euros.
On Tuesday Siemens said it would spin off its gas and power business, which has dragged on the German engineering firm's performance as the rise of renewable power hits demand for gas turbines.
($1 = 0.8925 euros)
(Reporting by John Revill; Editing by Michelle Martin)