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Siemens posts strong Q1 but cuts forecast

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11:49 CEST+02:00
The German industrial group Siemens on Wednesday lowered its full-year operating profit forecast by 17.5 percent even as it presented strong quarterly results.

Siemens said it expected a full-year operating profit of more than €6.6 billion ($8.7 billion) in core activities, compared with a previous forecast of more than €8 billion.

The group's "Total Sectors" report presented operating profit and sales for the second quarter of Siemens' fiscal year, which begins on October 1. Siemens has reorganised its activities into three main sectors: energy, healthcare and industry.

Overall operating profit for the three month period from January through March shot up by 43 percent to € 1.8 billion, while sales rose by five percent to € 18.95 billion, exceeding analysts' expectations. Net profit leapt by 146 percent to € 1.01 billion from the second quarter of its previous fiscal year, which had been weakened by exceptional items.

Siemens has nonetheless not escaped fallout from the international economic crisis.

Orders in early 2009 fell by 11 percent and the group's industry sector posted a 29 percent drop in its quarterly operating profit. Siemens boss Peter Loescher nonetheless stressed in an address that “Siemens is not in crisis," and "did particularly well compared to our competitors," in the latest quarter.

The company's statement said that "the order backlog of the three sectors again increased, to € 87 billion, and included no material cancellations during the quarter."

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