Publications
Partners
Frankfurt - German conglomerate Siemens, a bellwether for
Europe’s manufacturing industry, reported a 23% decline in its first-quarter
core operating profit, missing the most pessimistic analysts’ forecast as
Europe’s debt woes took their toll in the real economy.
Europe’s biggest engineering conglomerate said on Tuesday
operating profit at its main businesses - industry, energy, healthcare and
infrastructure - declined to €1.60bn.
The average estimate was €2.1bn, up 0.4% from the
year-earlier figure of €2.09bn. The lowest estimate was €1.93bn.
The Munich-based maker of products ranging from fast trains
and steam turbines to hearing aids and lightbulbs also said new orders shrank
5%, though revenue rose 2% in the three months to December 31.
“The uncertainties of the ongoing debt crisis have left
their mark on the real economy,” CEO Peter Loescher said.
“Although a recovery is expected in the second half of the
year, we must work hard to achieve our goals,” he said.
Siemens also booked charges of around €344m for its power
transmission and transportation businesses, as well as for restructuring costs
to realign healthcare.
Nonetheless, the company stuck with its 2012 outlook for
flat net income from continuing operations at €6bn. Analysts on average expect
€5.8bn.
Shares in Siemens have declined 16% in the past six months while GE stocks have risen 6%, Philips shares were down 11%, and Alstom lost 28%.
