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Lower quarterly profit for Siemens

The German technology group Siemens achieved lower profits in the past quarter, due to continued weakness in its gas turbine activities. At the division for industrial automation software things went better.

The operating profit from industrial activities, the most important profit factor at Siemens, fell by 6 percent in the first quarter of the financial year to almost 2.1 billion euros compared to a year earlier. Turnover rose by 1 percent to 20.1 billion euros. Order intake climbed 12 percent to nearly 25.2 billion euros, aided by a major UK order for metros.

Net profit halved to 1.1 billion euros on a net basis. This is partly due to the costs of scrapping thousands of jobs in the energy sector, which makes gas turbines, among other things. In addition, a year earlier Siemens benefited from a windfall through the American tax reforms, plus the sale of shares in former subsidiary Osram Light.

Siemens indicated a slight revenue growth for the entire financial year, with a profit margin of 11 to 12 percent. Earnings per share are expected to fall.

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