German conglomerate Siemens, a bellwether for Europe's manufacturing industry, reported a 23 per cent decline in its first-quarter core operating profit, missing the most pessimistic analysts' forecast as Europe's debt woes took their toll.
Europe's biggest engineering conglomerate said today operating profit at its main businesses - industry, energy, healthcare and infrastructure - declined to €1.6 billion.
The average estimate was €2.1 billion, up 0.4 per cent from the year-earlier figure of €2.09 billion. The lowest estimate was €1.93 billion.
The Munich-based maker of products ranging from fast trains and steam turbines to hearing aids and lightbulbs also said new orders shrank 5 per cent, though revenue rose 2 per cent in the three months to December 31st.
"The uncertainties of the ongoing debt crisis have left their mark on the real economy," chief executive Peter Löscher said.
"Although a recovery is expected in the second half of the year, we must work hard to achieve our goals.”
Siemens also booked charges of around €344 million 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 €6 billion. Analysts on average expect €5.8 billion.
Shares in Siemens have declined 16 per cent in the past six months while GE have risen 6 per cent, Philips was down 11 per cent, and Alstom down 28 per cent.
Reuters
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