April 25 - German engineering conglomerate Siemens slashed its full-year profit forecast on Wednesday after incurring another major charge related to delayed offshore wind power projects in the second quarter. Hayley Platt reports.
It's a giant in the world of engineering but losses from its wind power division have forced Siemens to cut its profit forecast for the year. It's had problems connecting wind farms off the German North Sea coast with the mainland power grid. And Siemen's CEO, Peter Loescher said he couldn't rule out further charges. SOUNDBITE: Peter Loescher, CEO, Siemens, saying (English): "Due to the fact that there is a long implementation lead time, how you implement this type of highly complex grid access project, we have to anticipate that our P&L (profit and loss statement) will be impacted going forward by these four projects." Siemens core industrial and healthcare businesses performed better than anticipated. But the company has revised its net profit for the year down from 6 billion euros to no more than 5.4 billion - roughly in line with forecasts. Overall net profit fell by two thirds to just over 1 billion euros. Orders were also down 13 percent after the firm received fewer big contracts from Germany, India and China. SOUNDBITE: Peter Loescher, CEO, Siemens, saying (English): "A third of our business is in the emerging market, so we are broad based, we are really in 190 countries with our own organisation so this will continue to be a growth engine for us going forward and you can see this, revenue growth in emerging markets in the second quarter was double-digit and I anticipate that we will continue to see this dichotomy." Siemens makes a wide range of products from turbines and trains to light bulbs and hearing aids. It's also a bellwether for the euro zone's biggest economy. . The company's results come after German manufacturing in April fell at its fastest rate in nearly three years. Exports have declined as the euro zone debt crisis has choked demand from key trading partners. Hayley Platt, Reuters.