Siemens (SI) Issues Profit Warning, Sees Weakness Through First Half of 2012
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Siemens shares are trading slightly lower Tuesday following reports the German industrial giant may not be able to meet "ambitious" quarterly expectations.
Speaking with the WSJ, Siemens CFO Joe Kaesar said the company's guidance was "very ambitious." He also admitted headwinds have gotten stronger since releasing financial guidance not that long ago.
In October, CEO Peter Loescher gave expectations for sales to rise 5 percent in fiscal 2012, due in part to a record order backlog (which was about $122.5 billion at the end of the third quarter).
But Kaesar also noted the overall economic situation would have an impact on the investment behavior of customers. Siemens sees an industrial slowdown in the first half of 2012, mostly attributed to the European debt crisis which sapped confidence in financial institutions and lending, according to Kaesar.
For the second half of 2012, Kaesar sees the U.S. and emerging markets prompting a dynamic rebound.
Extraordinary costs from its Nokia Siemens joint venture, as well as the restructuring of its health-care division, have hampered margins and profitability. Kaesar said Siemens is unlikely to book any charges in the most-recent quarter due to the Nokia Siemens joint venture.
The Street is currently modeling for earnings of $2.06 per share on revenue of $23.50 billion.
The stock last traded at $96.30, down about 1 percent from Monday's closing price.
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Speaking with the WSJ, Siemens CFO Joe Kaesar said the company's guidance was "very ambitious." He also admitted headwinds have gotten stronger since releasing financial guidance not that long ago.
In October, CEO Peter Loescher gave expectations for sales to rise 5 percent in fiscal 2012, due in part to a record order backlog (which was about $122.5 billion at the end of the third quarter).
But Kaesar also noted the overall economic situation would have an impact on the investment behavior of customers. Siemens sees an industrial slowdown in the first half of 2012, mostly attributed to the European debt crisis which sapped confidence in financial institutions and lending, according to Kaesar.
For the second half of 2012, Kaesar sees the U.S. and emerging markets prompting a dynamic rebound.
Extraordinary costs from its Nokia Siemens joint venture, as well as the restructuring of its health-care division, have hampered margins and profitability. Kaesar said Siemens is unlikely to book any charges in the most-recent quarter due to the Nokia Siemens joint venture.
The Street is currently modeling for earnings of $2.06 per share on revenue of $23.50 billion.
The stock last traded at $96.30, down about 1 percent from Monday's closing price.
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