Siemens reports net profit rises over 20 percent with orders up
January 29, 2014, 12:08 am TWN
FRANKFURT, Germany--Industrial equipment maker Siemens AG said quarterly net profit rose 20 percent as the company moved past one-time charges for delays delivering high-speed trains.
Net profit rose to 1.46 billion euros (US$2 billion) in the fourth quarter of 2013, the company's fiscal first. That was up from 1.21 billion euros a year ago.
Last year the company had 116 million euros in charges connected to delay in production of trains for Germany's railway company, and a 150 million euro loss at its solar power business. This year's figure also had stronger gains for real estate sales.
But while the bottom line improved, a stronger euro and slower demand in emerging markets hurt top-line revenues. They were down 3 percent at 17.325 billion euros.
Orders — a key determiner of future profits — rose 9 percent. Saudi Arabia helped with a 1.6 billion euro order for two driverless subway lines in the capital, Riyadh.