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Image: Reuters/Hannibal/Files

Siemens posts dip in quarterly profit

January 27, 2015

Germany's Siemens has posted disappointing figures for its most recent quarter. Though this was in line with company expectations, the engineering conglomerate has a more optimistic view of the year.


Industrial conglomerate Siemens posted a dip in net profit in its first fiscal quarter on Tuesday, as earnings were dragged down by lower oil prices and Europe's weak economy.

Net income fell to 1.095 billion euros ($1.230 billion) in its most recent quarter from 1.457 billion euros in the same period a year back.

New orders, a key predictor of future earnings, were down 11 percent to 18.013 billion euros - the slip partially attributed to a 1.6-billion-euro order in the year-earlier quarter for a subway in Saudia Arabia.

But sales grew by 3 percent to 17.415 billion euros, supported by favorable currency exchange rates.

The Munich-based company said it was sticking to its full-year outlook, as most business in the first quarter was in line with expectations.

"We believe that our business environment will be complex in fiscal 2015, among other things due to geopolitical tensions," Chief Executive Joe Kaeser said.

Although sales were projected to remain steady, he added the group was penciling in a 15-percent increase in net profit per share due to gains from divestments.

el/ng (AFP, AP)

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