Siemens issues profit warning after projects audit
Germany's Siemens issued a profit warning on Monday after a review of major projects at three operations, including power generation.
It added the amount was the largest piece of any additional financial burden for 2008.
The warning followed a review of projects at its power generation, mobility division in the industry sector and IT Solutions and Services.
Siemens confirmed its targets for 2010, when the various units are expected to reach certain operating margin goals.
The company had aimed to publish first results from the audit of turnkey projects at its power generation unit by April this year and audit other turnkey projects as well. It has said the entire backlog would be examined.
The trains-to-light bulbs conglomerate is in the midst of its biggest restructuring in nearly two decades.
Chief Executive Peter Loescher, who took over Siemens in May, is set to slim down the company to catch up with more profitable rivals such as General Electric.
Loescher has so far scaled down the management board and regrouped the company's 10 units into three major divisions: industry, energy and healthcare. (Reuters)
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