Siemens 1Q net profit down 81%

FRANKFURT (Germany) - INDUSTRIAL conglomerate Siemens AG said on Tuesday its fiscal first-quarter net profit fell, largely due to one-time effects stemming from the sale of its VDO Automotive business last year.

The Munich-based maker of products ranging from trains to light bulbs said net profit for the quarter from October through December fell more than 80 percent, to euro1.23 billion (S$2.42 billion) from euro6.475 billion a year ago. The sale of VDO and other assets contributed euro5.4 billion to income last year.

First-quarter revenues rose 7 percent to euro19.6 billion, from euro18.4 billion a year ago, while the company's order book for the period fell 8 per cent to euro22.2 billion.

The company said it was sticking to its target for reaching total sector profit of between euro8 billion and euro8.5 billion in 2009.

'Siemens got off to a good start in fiscal 2009, including better order development than most of our competitors in the first quarter,' the company's Chief Executive Peter Loescher said in a statement.

'Revenue increased strongly. Total Sectors profit clearly exceeded the prior-year level. Therefore we are sticking to our 2009 targets, even though reaching them has become more ambitious. While we are closely monitoring market conditions on a quarterly basis, we are progressing through the year strong, confident and focused,' Mr Loescher said. -- AP