Siemens AG issued a profit warning yesterday, saying that weaker-than-expected performance in its major business projects this quarter was going to pull its earnings down by approximately 900 million euros (US$1.4 billion).
The announcement was a surprise for the conglomerate, whose diverse products include trams, turbines and telecommunications equipment, given that it had said in January that sales were expected to double the pace of the global economy. It saw a first-quarter net profit of nearly 6.5 billion euros compared to 788 million euros in the same period a year earlier.
The Munich-based company, whose current quarter ends on March 31, said it had launched an extensive review of its major products this quarter, with an emphasis on its fossil power generation division in the company's energy sector as well as its mobility division in its industry sector and its IT Solutions and Services.
Specifically, the company said it had experienced delays in its fossil power generation division because "the large number of turnkey projects that have accumulated since 2004 has had an adverse effect."
It also said it was hampered by delays in recruiting experienced project engineers. Siemens said its IT unit suffered the loss of a major order in the UK from a customer, which it did not identify.
"The results of the review so far indicate a substantial impact on earnings in the current fiscal year," the company said, though it added that "going forward, the path to profitable growth has been charted."
Still, the company said that it expected "the negative impact on earnings to amount to approximately 900 million euros this quarter. The expectation is that this amount represents the largest piece of any additional financial burdens for 2008."
Last month, Siemens said it would reorganize its corporate telecom unit as it prepares to get out of the business.
Japanese Prime Minister Sanae Takaichi yesterday lavished US President Donald Trump with praise and vows of a “golden age” of ties on his visit to Tokyo, before inking a deal with Washington aimed at securing critical minerals. Takaichi — Japan’s first female prime minister — pulled out all the stops for Trump in her opening test on the international stage and even announced that she would nominate him for a Nobel Peace Prize, the White House said. Trump has become increasingly focused on the Nobel since his return to power in January and claims to have ended several conflicts around the world,
UKRAINE, NVIDIA: The US leader said the subject of Russia’s war had come up ‘very strongly,’ while Jenson Huang was hoping that the conversation was good Chinese President Xi Jinping (習近平) and US President Donald Trump had differing takes following their meeting in Busan, South Korea, yesterday. Xi said that the two sides should complete follow-up work as soon as possible to deliver tangible results that would provide “peace of mind” to China, the US and the rest of the world, while Trump hailed the “great success” of the talks. The two discussed trade, including a deal to reduce tariffs slapped on China for its role in the fentanyl trade, as well as cooperation in ending the war in Ukraine, among other issues, but they did not mention
REASSURANCE: The US said Taiwan’s interests would not be harmed during the talk and that it remains steadfast in its support for the nation, the foreign minister said US President Donald Trump on Friday said he would bring up Taiwan with Chinese President Xi Jinping (習近平) during a meeting on the sidelines of the APEC Summit in South Korea this week. “I will be talking about Taiwan [with Xi],” Trump told reporters before he departed for his trip to Asia, adding that he had “a lot of respect for Taiwan.” “We have a lot to talk about with President Xi, and he has a lot to talk about with us. I think we’ll have a good meeting,” Trump said. Taiwan has long been a contentious issue between the US and China.
GLOBAL PROJECT: Underseas cables ‘are the nervous system of democratic connectivity,’ which is under stress, Member of the European Parliament Rihards Kols said The government yesterday launched an initiative to promote global cooperation on improved security of undersea cables, following reported disruptions of such cables near Taiwan and around the world. The Management Initiative on International Undersea Cables aims to “bring together stakeholders, align standards, promote best practices and turn shared concerns into beneficial cooperation,” Minister of Foreign Affairs Lin Chia-lung (林佳龍) said at a seminar in Taipei. The project would be known as “RISK,” an acronym for risk mitigation, information sharing, systemic reform and knowledge building, he said at the seminar, titled “Taiwan-Europe Subsea Cable Security Cooperation Forum.” Taiwan sits at a vital junction on
RSS