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By Bloomberg

Siemens AG, Europe’s largest engineering company, reported first-quarter profit that matched analyst estimates as declines in the health-care and energy-generation operations were offset by gains in other divisions.

Profit from so-called industrial operations fell 4.1 percent to 1.8 billion euros ($2 Billion), the Munich-based company said in a statement. That matched the average estimate of six analysts surveyed by Bloomberg. Revenue increased 5.1 percent to 17.4 billion euros.

“While some divisions provided excellent performance, health-care needs to step up its efforts,” said Chief Executive Officer Joe Kaeser. “Power and gas will need a more comprehensive concept to return to historical margins longer term.”

Kaeser has been expanding Siemens’ fossil-fuel extraction and energy-supply operations since taking the reins at Siemens in August 2013, and last year acquired Rolls-Royce Holdings Plc’s energy business and agreed to buy oil-and-gas equipment maker Dresser-Rand Inc. for a combined 6.8 billion euros. Both companies were intended to boost Siemens’ offering for the extraction of shale gas through hydraulic fracturing, or fracking.

The decline in the price of oil has led some analysts and investors to question the wisdom of the Dresser-Rand deal, which was priced at 14.1 times the average expectation for 2015 earnings before interest, taxes, depreciation and amortization. Brent crude has fallen about 50 percent to less than $50 a barrel since the acquisition was announced.

Takeovers, Disposals

To fund the deals, Kaeser has been divesting businesses ranging from a hearing aids-making unit to a household appliances joint venture. With those divestments taken into account, Siemens probably spent just 1 billion euros more on takeovers last year than it took in through disposals, according to a Bloomberg Intelligence estimate.

Siemens announced a management rejig yesterday to give its health-care operations greater internal independence, appointing Bernd Montag to run the health-care unit while giving personnel chief and Chief Technology Officer Siegfried Russwurm oversight of that business on Siemens’ board. Hermann Requardt, who had been leading the health-care business since 2008, will be replaced on the board by Janina Kugel who will take on Russwurm’s personnel responsibilities.