Published in News

Siemens lowers profit outlook



Still more doom ahead

Siemens lowered its profit outlook for this year due to weak demand from industry and delays in delivering high speed trains and connecting offshore wind farms.

Siemens also stepped up cost cutting efforts to cope with the global economic slowdown. Things would have been worse, had it not been for four big deals had pushed orders back to growth after six quarters of declines. The German outfit now expects net to reach between 4.5 billion euros and 5 billion in the current year.

In its fiscal second quarter, profit stagnated and revenue fell for the first time in two years on weak demand for industrial products such as automation and drive technologies as well as fewer sales of power plants. Orders jumped 20 percent to 21.45 billion euros four major European orders for trains and wind farms. However orders in Siemens' bread-and-butter industry business were down by 11 percent.

Siemens has put on the back burner a plan to increase annual sales by about a third to 100 billion euros and late last year launched a push to save 6 billion euros over two years.

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