Siemens reduces full-year forecast
BERLIN (AP) - German industrial conglomerate Siemens AG warned Thursday that its 2013 forecast would be at the "low-end" of what it had anticipated because of numerous one-off charges and restructuring costs, despite posting a rise in second-quarter net income.
Siemens, which makes a wide variety of products including high-speed trains and wind turbines, is in the middle of an overhaul aimed at increasing competitiveness dubbed "Siemens 2014." Charges related to the program are estimated to come in at 900 million euros ($1.2 billion) for 2013- lowering the company's bottom line this year.
Siemens had predicted income from continuing operations at between 4.5 billion euros and 5 billion euros, but now says it expects income "to approach the low end of our original expectation."
In the second quarter, Siemens net income rose to 1.03 billion euros from 938 million euros a year ago. Orders rose 20 percent to 21.5 billion euros, but revenue fell 7 percent to 18 billion euros.
"Results for the second quarter show a mixed picture," CEO Peter Loescher said in a statement. "While we were able to clearly increase orders, we still have challenges regarding revenue and profit."
Siemens took charges of 161 million euros in the quarter related to the delayed delivery of high-speed trains, and expects a 300 million euro loss in 2013 as it exits the solar energy business.
Siemens shares rose 0.6 percent in trading in Frankfurt to 79.81 euros.
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