SIEMENS, Europe’s largest engineering group, has warned that the global economy is becoming riskier, as its healthcare unit dragged quarterly results below expectations.
Fiscal third-quarter net profit from continuing operations fell 47 per cent to €763m (£668m), lower than an analysts’ consensus of about €1bn, and while the group brushed off concerns that emerging markets might be cooling, it acknowledged developed countries were a worry.
Chief executive Peter Loescher said: “In terms of macroeconomic conditions, I think we are seeing a levelling off of growth momentum in the US and Europe.”
He added that the healthcare market is difficult. Cash-strapped governments across Europe are pushing ahead with a drive to lower costs, while US President Barack Obama is stepping up his drive to get healthcare spending under control in an effort to curb the bloated budget.
The results suffered from a charge related to Siemens’ exit from nuclear joint venture Areva and one from a halted particle therapy project it had with Rhoen Klinikum.
But the firm confirmed its full-year profit outlook, banking on robust demand from emerging markets.
City A.M. Reporter