German engineering giant Siemens cut its
full-year business forecasts Thursday due to weak industrial demand
and charges for delays in rail deliveries and wind-energy projects.
The Munich-based group said net profit from continuing operations will come in near the low end of its 4.5-billion-euro (5.9-billion-dollar) to 5-billion-euro target in the current year.
"While we were able to clearly increase orders, we still have challenges regarding revenue and profit," chief executive officer Peter Loescher said in a statement.
Siemens now expects full-year revenues to fall moderately. It had previously forecast a relatively stable sales outlook.
Net profit from continuing operations climbed to 982 million euros in the three months through March, from 979 million euros in the same period in 2012.
Quarterly group revenue fell 6.7 per cent to 18 billion euros.
Siemens pointed to "burdens at the company's high-speed trains business and from offshore grid connection projects in the North Sea" as affecting earnings.
Despite weak industrial orders from Germany and China in the quarter, orders rose 20 per cent to 21.5 billion euros.
The group released the results as it pressed on with rolling out a major cost-cutting programme.
Siemens hopes to cut costs by 6 billion euros by next year.
Group shares were down 0.7 per cent at 78.82 euros in early trading in Frankfurt.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
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