Business News

Siemens Profit Hit by Delayed Order, Restructuring

Mario Proenca | Bloomberg | Getty Images

Germany's Siemens posted a slight decline in quarterly profit due to charges for a delayed high-speed train order and its new savings program.

Siemens, an industrial bellwether that makes products ranging from fast trains and gas turbines to hearing aids, said on Wednesday its fiscal first-quarter net profit from continuing operations was down 1 percent at about 1.3 billion euros ($1.7 billion).

A German newspaper had already cited industry sources on Tuesday as saying profit would come in at about 1.3 billion euros, which is better than analysts' consensus of 1.14 billion.

Siemens confirmed its outlook for full-year net profit from continuing operations to decline to between 4.5 billion euros and 5.0 billion this financial year, from 5.18 billion last year, due to about 1 billion of costs from the savings program and the impact of a change in accounting standards.

In the first quarter, it booked 50 million euros of charges for the savings program.