Siemens warns of challenges ahead for energy business

Reuters News
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Posted: Jul 31, 2014 1:22 AM

FRANKFURT (Reuters) - Germany's Siemens warned on Thursday that its energy business faced challenges in the coming quarters as it reported quarterly core profit that fell short of expectations.

In the three months through June, operating profit from Siemens's four main businesses - Industry, Energy, Healthcare and Infrastructure & Cities - rose 37 percent to 1.74 billion euros ($2.33 billion), missing analyst consensus of 1.83 billion in a Reuters poll.

It said it still saw flat revenues in its fiscal year through the end of September, with an increase in earnings per share by at least 15 percent from last year's 5.08 euros. Analysts see 2013/14 revenue down 1.1 percent and earnings per share up by 25 percent.

($1 = 0.7466 Euros)

(Reporting by Maria Sheahan; Editing by Jonathan Gould)