Siemens' Q2 profits slide 67%

Siemens second-quarter net profit slid 67%, weighed down by weaker performance in its major business projects, an Associated Press report said.

The Munich-based company earned €412 million (US$641.5 million) in the January-March period, compared with €1.26 billion a year earlier, the Associated Press report said.

That was better than the €351 million (US$546.5 million) that analysts polled by Dow Jones Newswires had forecast.

The slip was no surprise. According to the report, last month Siemens warned that weaker-than-expected performance in its major business projects would trim its earnings by about €900 million (US$1.4 billion).

In February, Siemens said it would reorganise its corporate telecom unit as it prepares to get out of the business, eliminating 3,800 jobs while transferring another 3,000 to partners or other units - its biggest cuts in years.

Sales rose 1% to €18.09 billion (US$28.2 billion) in the quarter, compared with 18 billion euros a year earlier, as new orders rose 12% to €23.3 billion (US$36.3 billion) from €20.8 billion in the same period last year.