Canadian Manufacturing

Siemens’ net profit climbs 20% as it moves past one-time charges

Profit rose to US$2-billion in fourth quarter of 2013, company's fiscal first, from US$1.65-billion last year

FRANKFURT, Germany—Industrial equipment maker Siemens AG said quarterly net profit rose 20 per cent as the company moved past one-time charges for delays delivering high-speed trains.

Net profit rose to US$2-billion in the fourth quarter of 2013, the company’s fiscal first.

That was up from US$1.65-billion a year ago.

Last year the company had US$158-million in charges connected to a delay in production of trains for Germany’s railway company, and a US$205-million 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 three per cent at US$23.6-billion.

Orders—a key determiner of future profits—rose nine per cent.

Saudi Arabia helped with a US$2.2-billion order for two driverless subway lines in the capital, Riyadh.

CEO Joe Kaeser called it a “sound quarter,” adding that “market conditions were not in our favour.”

Siemens said it expects “challenging” markets this year.

It predicted it would grow net profit by 15 per cent, assuming flats sales with currency effects excluded.

The Munich-based company also said it was withdrawing its listing on the New York Stock Exchange (NYSE).

It says the United States accounted for less than five per cent of its global trading volume and that ending the listing would simplify financial reporting.

Siemens has traded as American Depositary Receipts (ADRs).

The company makes a wide range of heavy equipment and infrastructure, including trains, power turbines, and medical diagnostic devices.

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