FRANKFURT: German conglomerate Siemens, a bellwether for Europe's manufacturing industry, reported a 23 percent decline in its first-quarter core operating profit, missing the most pessimistic analysts' forecast as Europe's debt woes took their toll in the real economy.
Europe's biggest engineering conglomerate said on Tuesday operating profit at its main businesses -- industry, energy, healthcare and infrastructure -- declined to 1.60 billion euros ($2.09 billion).
The average estimate was 2.1 billion euros, up 0.4 percent from the year-earlier figure of 2.09 billion. The lowest estimate was 1.93 billion.
The Munich-based maker of products ranging from fast trains and steam turbines to hearing aids and lightbulbs also said new orders shrank 5 percent, though revenue rose 2 percent in the three months to Dec. 31.
"The uncertainties of the ongoing debt crisis have left their mark on the real economy," Chief Executive Peter Loescher said.
"Although a recovery is expected in the second half of the year, we must work hard to achieve our goals," he added.
Siemens also booked charges of around 344 million euros for its power transmission and transportation businesses as well as for restructuring costs to realign healthcare.
Nonetheless, the company stuck with its 2012 outlook for flat net income from continuing operations at 6 billion euros. Analysts on average expect 5.8 billion euros.
Shares in Siemens have declined 16 percent in the past six months while GE have risen 6 percent, Philips was down 11 percent, and Alstom down 28 percent.
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