FRANKFURT, Germany: Siemens said on Thursday it had incurred a significant net loss in the previous quarter as it counted the cost of struggles at its former energy unit.

Between April and June, the German industrial conglomerate posted a net loss of 1.5 billion euros ($1.5 billion), reversing its 1.5-billion-euro profit in the same period last year.

The loss was due to a 2.7-billioneuro devaluation of its “stake in Siemens Energy and Russia-related impacts totaling 0.6 billion euros,” the firm said in a statement.

Shares in Siemens Energy, which was spun off from its parent in 2020, have fallen about 25 percent since the start of the year.

The unit has had to contend with the struggles of its own wind-energy subsidiary, Siemens Gamesa, which has struggled to turn a profit despite surging demand for renewable energy.

Quarterly revenues at Siemens, which makes products ranging from trains to factory equipment, rose 11 percent year on year to 17.9 billion euros, with progress seen across the board.

Its “digital industries” division, which includes factory automation, led the way with sales up 18 percent to 4.9 billion euros.

The improvement came despite the turbulence caused by Russia’s invasion of Ukraine, soaring inflation and persistent bottlenecks in supply chains that can be traced back to the coronavirus pandemic.

The Munich-based company has been able “to avoid larger disruptions due to supply chain risks,” it said.

Siemens, which runs its business year from October to September, said it continued to expect a profitable 12-month period, while reducing its guidance in line with the hit to its stake in Siemens Energy.

As such, the group expected earnings for each share to be about 5.33 to 5.73 euros, down from an earlier estimate of about 9 euros.