Industrial equipment maker Siemens AG said Tuesday, Jan 24, that net profit fell 17 percent to euro1.46 billion ($1.89 billion) in the final quarter of 2011 due to delays in major wind-power and rail projects, and as the uncertain global economic outlook hurt orders.
Chief executive officer Peter Loescher said the result showed that financial markets turmoil stemming from Europe's debt crisis "have left their mark on the real economy" through weaker demand.
"The real economy cannot escape the effects of the volatility on the financial markets, public budgets are increasingly strained, anxiety about credit bottlenecks is dampening willingness to invest and global economic growth is leveling off," he said at a news conference webcast from the company's Munich headquarters.
Nonetheless, the first quarter net profit figure exceeded average estimates of euro1.396 billion among analysts surveyed by FactSet.
Revenue grew 3 percent to euro17.9 billion but new orders slipped 5 percent to euro19.8 billion, The Associated Press reported.
