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Thu, Apr 30, 2009 - Page 10 News List

Siemens lowers forecast despite strong Q2 results

‘NOT IN CRISIS’ Overall operating profit for the second quarter of the company’s fiscal year, which began on Oct. 1 last year, shot up by 43 percent to 1.8 billion euros

AFP , BERLIN

The German industrial group Siemens yesterday lowered its full-year operating profit forecast by 17.5 percent even as it presented strong quarterly results.

Siemens said it expected a full-year operating profit of more than 6.6 billion euros (US$8.7 billion) in core activities, compared with a previous forecast of more than 8 billion euros.

The group’s “Total Sectors” report presented operating profit and sales for the second quarter of Siemens’ fiscal year, which begins on Oct. 1.

Siemens has reorganized its activities into three main sectors, energy, healthcare and industry.

Overall operating profit for the three-month period from January through last month shot up by 43 percent to 1.8 billion euros, while sales rose by 5 percent to 18.95 billion euros.

Net profit leapt by 146 percent to 1.01 billion euros from the second quarter of its previous fiscal year, which had been weakened by exceptional items.

Siemens has nonetheless not escaped fallout from the international economic crisis.

Orders early this year fell by 11 percent and the group’s industry sector posted a 29 percent drop in its quarterly operating profit.

Siemens boss Peter Loescher nonetheless stressed in an address that “Siemens is not in crisis,” and “did particularly well compared to our competitors,” in the three-month period.

The company’s statement said that “the order backlog of the three sectors again increased, to 87 billion euros, and included no material cancellations during the quarter.”

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