BERLIN May 7 German engineering giant Siemens
posted a weaker-than-expected 16 percent increase in
operating profit on Wednesday, hit by charges in its power
The Munich-based firm, which released details of a
long-awaited corporate reorganisation late on Tuesday, said
total sector profit, or operating profit, for the quarter ending
March 31 came in at 1.57 billion euros ($2.18 billion) on
revenues of 17.45 billion.
According to a Reuters consensus, analysts had expected
profit of 1.7 billion euros on revenues of 18.1 billion.
"The second quarter showed that we still have a lot to do to
improve our operating performance," said Chief Executive Joe
Kaeser, whose overhaul of the company includes plans to spin off
Siemens's hearing aids business and streamline its divisional
"Nevertheless we are on course to reach our targets for the
fiscal year," he said.
Profit in the energy sector tumbled 54 percent to 255
million euros, largely due to 310 million euros in project
charges related to two high-voltage direct current transmission
(HVDC) projects in Canada.
Kaeser took the reins of the company last summer following
the ouster of Peter Loescher. The earnings and strategic revamp
come as Siemens mulls a formal offer for the energy business of
French rival Alstom, which has already received a bid
from U.S. giant General Electric.
($1 = 0.7177 Euros)
(Reporting by Noah Barkin)