Siemens said its second-quarter net profit fell to €412 million from last year's €1.26 billion, mainly impacted by an €857 million euro profit warning.
Second-quarter sales totalled €18.094 billion, up slightly from €18 billion in the previous year, but below the €19.19 billion estimate.
Group operating profit decreased to €1.2 billion in the second quarter, down from last year's €1.781 billion, but above the €928 million consensus.
The company only partly reaffirmed its outlook for 2008, still seeing revenue growing at least twice as fast as global GDP.
However, the company said it now sees full-year group profit from operations to match the 2007 level. It forecast operating profit growing at least twice as fast as revenues.
The company said the project review at its power division resulted in the €857 million drag on profits in the second quarter.
It said the review would make a further negative impact on profits "of a near triple-digit million euro amount over the next three quarters".
In March, the company issued a profit warning, saying weaker-than-expected performance in its major business projects in the current quarter to March 31st will reduce earnings by about €900 million.
Siemens reviewed major projects, focusing on fossil power generation in its energy division as well as on the mobility division in the industry sector and its unit Siemens IT Solutions and Services.
The company said it expects the €900 million impact to be "the largest piece of any additional financial burdens for 2008".
Agencies