BERLIN (Reuters) - German engineering conglomerate Siemens AG (SIEGn.DE) warned that its fiscal second quarter will be hit by problems at railway technology and power transmission operations.
“The challenges in railway technology and power transmission will leave their marks on results for the second quarter” due for publication on May 2, finance chief Joe Kaeser told Rheinische Post in an interview published on Saturday.
Second-quarter earnings may also be burdened as operations in China are struggling to offset weakening demand in short-cycle business in the United States and Germany, Kaeser was quoted as saying.
A spokesman at Munich-based Siemens confirmed the CFO’s remarks by telephone.
Chief Executive Peter Loescher told Germany’s business daily Handelsblatt last week that signs of a second-half economic rebound have yet to materialize, adding that overall business “has not become easier.”
Kaeser said it will be “a tight squeeze” to achieve operating profit goals for 2013. Siemens said on January 23 that it sees annual profit declining to between 4.5 billion and 5 billion euros, from 5.18 billion last year.
Still, the CFO told the newspaper he expects 2013 group earnings per share to at least match last year’s level. Siemens has not published a specific EPS outlook before.
Also, second-quarter new orders at Siemens will be “significantly above” levels reached a year earlier and during the previous quarter, thanks to several large orders, the CFO was quoted as saying.
Reporting by Maria Sheahan and Andreas Cremer; editing by Ron Askew