BERLIN -- Earnings at industrial conglomerate Siemens AG declined 12 percent in the October-December quarter after the company took charges at its transport business and a solar power operation it is selling.
Siemens reported Wednesday net earnings of (euro) 1.21 billion ($1.6 billion) in its fiscal first quarter, down from (euro) 1.38 billion a year earlier. However, its revenue climbed 2 percent to (euro) 18.13 billion despite a 3 percent drop in orders to (euro) 19.14 billion.
"In an uncertain economic environment, we got off to a solid start in fiscal 2013," CEO Peter Loescher said. He cautioned that the global economy was unlikely to help out over the rest of the year to help the company reach its "ambitious goals."
In November, Siemens launched a cost-cutting program and productivity push aimed at saving (euro) 6 billion by 2014 and increasing competitiveness. Loescher said the company's "full attention is on implementing" the program.
During the October-December quarter, Siemens said it would sell its solar business and concentrate its renewable energy focus on wind and water power. Its first-quarter earnings were hit by a (euro) 150 million loss from the solar business and charges at its transport business totaled (euro) 116 million amid delays in the delivery of trains to Germany's national railway.
Siemens shares were slightly lower in early Frankfurt trading, slipping 0.4 percent to (euro) 83.33.Copyright © 2014 Paddock Publications, Inc. All rights reserved.