Siemens issues profit warning after projects audit

Conferences

Germany's Siemens issued a profit warning on Monday after a review of major projects at three operations, including power generation.

Siemens expects the negative impact on earnings to amount to approximately €900 million ($1.2 billion) in the current quarter,” the engineering conglomerate said in a statement.

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)

ADVERTISEMENT

Job ads in hospitality, tourism sector grow drastically  Analysis

Job ads in hospitality, tourism sector grow drastically 

Lawmakers approve 2022 budget Parliament

Lawmakers approve 2022 budget

Duncan Graham reelected as BCCH president Appointments

Duncan Graham reelected as BCCH president

Budapest launches revamped coupon card for visitors City

Budapest launches revamped coupon card for visitors

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.