Siemens Q3 net profit 1.3 bn euros, down 7%

Siemens Q3 net profit 1.3 bn euros, down 7%
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First Published: Thu, Jul 30 2009. 01 16 PM IST
Updated: Thu, Jul 30 2009. 01 16 PM IST
Frankfurt: German industrial conglomerate Siemens AG said Thursday that net profit for its fiscal third quarter fell 7% as the global recession curbed demand for its products, which range from light bulbs to high-speed trains.
The Munich-based company said net profit in the April-June period fell to €1.3 billion ($1.8 billion) from €1.4 billion in the year-ago quarter.
Revenues for the quarter fell 4% to €18.3 billion from €19.2 billion.
Siemens’ fiscal year begins in October.
The company confirmed its full-year targets, even in the “current challenging global economic environment.”
“Our third-quarter results demonstrate that we are fully on track to achieve our targets for fiscal 2009,” chief executive Peter Loescher said in a statement.
He said the company “did particularly well” compared with its main competitors.
“As expected, the macroeconomic environment clearly left its mark on new business. We had already prepared for that ahead of time. We are also carefully considering the challenges ahead. We will continue the rigorous pursuit of our corporate policy focused on sustainability,” Loescher said.
Siemens has said it stands to gain from a number of factors despite the global economic downturn.
For example, the company hopes to see about €15 billion ($21 billion) in new orders because of global government stimulus programs, and said it has €1 billion in infrastructure project orders in hand from South Africa, which is building furiously ahead of the 2010 World Cup there next summer.
Earlier this month, Siemens, along with 11 European companies also outlined a plan called Desertec, to build a massive solar power network across Saharan Africa. Though only still in the conceptual phase, the companies said the project could satisfy 15% of Europe’s energy needs by 2050.
Siemens generated about a quarter of its €77 billion ($108 billion) in fiscal 2008 revenues from its renewable energy portfolio, an area it will continue to focus on, even while it intends to also continue providing solutions in the nuclear, gas and coal sectors.
For the first nine months, Siemens said net profit fell nearly 60% to €3.6 billion from €8.3 billion in the year-earlier period. Nine-month revenues were however 2% higher, at €57 billion.
Siemens shares closed up 3% Wednesday at €57.05.
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First Published: Thu, Jul 30 2009. 01 16 PM IST