Siemens abandons profit target after weak second quarter

April 25, 2012

German engineering and technology giant Siemens warned Wednesday that full-year profits would fall short of original targets following a difficult second quarter.

"Challenges, mostly in our power transmission business, impact the level of income from continuing operations we originally expected to achieve in fiscal 2012 -- 6.0 billion euros ($7.9 billion) -- by an estimated 600-800 million euros," Siemens said in a statement.

The group, which runs its business year from October to September, said slumped by 64 percent to 1.015 billion euros in the second quarter, owing to charges in its power transmission business and restructuring at its with Nokia.

"As expected, the second quarter was not easy," said chief executive Peter Loescher.

"Profit for the quarter was below our due to charges at power transmission projects in Germany. We are addressing the problems systematically."

At the level of sales and orders, "while we achieved clear growth in revenue, orders came in below the prior year due to lower volume from large orders," the chief executive said.

revenues rose by 9.0 percent to 19.297 billion euros, while new orders slumped by 13 percent to 17.88 billion euros.

But even if Siemens was not expecting to achieve its full-year earnings targets, "for fiscal 2012, we are on course to achieve our goals for revenue and orders," Loescher insisted.

Explore further: Infineon sees lower 2012 sales as crisis bites

Related Stories

Infineon sees lower 2012 sales as crisis bites

November 16, 2011

German semi-conductors giant Infineon said Wednesday it expected sales in its current business year to decline by around five percent as customers increasingly hold back in the current economic gloom.

Dutch hi-tech company ASML profits rise

January 18, 2012

ASML, key global supplier of computer chip-making systems and high-tech bellwether, Wednesday posted record sales for 2011 alongside a fourth-quarter slump of nearly 30 percent in net income.

SAP says profits up in first quarter

April 13, 2012

German software giant SAP said on Friday it was sticking to its full-year targets for 2012 after profits rose in the first three months.

Dutch high-tech group ASML reports Q1 profits slump

April 18, 2012

The Dutch company ASML, a supplier of computer chip-making systems and a global high-tech bellwether, posted on Wednesday a 28 percent drop in first-quarter profit owing to weaker demand.

Dutch tech company ASML posts profit rise

October 12, 2011

Dutch company ASML, a key global supplier of computer chip-making systems, said Wednesday net profits had jumped 32 percent in the third quarter and maintained its outlook to achieve record sales by the end of 2011.

SAP profits up strongly in third quarter

October 14, 2011

German software giant SAP said Friday its profits more than doubled in the third quarter thanks to strong sales and lower legal costs related to litigation with arch-rival Oracle.

Recommended for you

'Droneboarding' takes off in Latvia

January 22, 2017

Skirted on all sides by snow-clad pine forests, Latvia's remote Lake Ninieris would be the perfect picture of winter tranquility—were it not for the huge drone buzzing like a swarm of angry bees as it zooms above the solid ...

Singapore 2G switchoff highlights digital divide

January 22, 2017

When Singapore pulls the plug on its 2G mobile phone network this year, thousands of people could be stuck without a signal—digital have-nots left behind by the relentless march of technology.

Making AI systems that see the world as humans do

January 19, 2017

A Northwestern University team developed a new computational model that performs at human levels on a standard intelligence test. This work is an important step toward making artificial intelligence systems that see and understand ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.