Siemens sticks to forecasts despite energy woes -source
MUNICH, Germany (Reuters) - Germany's Siemens remains on track to reaffirm its full-year forecasts when it reports quarterly results in May, even as problems at its energy business continue to weigh on earnings, a senior company source said on Tuesday.
"Business is running exceptionally stably, according to plan," the source said. The industrial group has targeted an operating profit margin of 10-11 percent for the year ending this September and a 15 percent rise in earnings per share.
Problems in Siemens' Energy Sector businesses, where rivals General Electric and Mitsubishi Hitachi <7011.T> <6501.T> have overtaken its technology lead in turbine efficiency, have battered Siemens' financial results.
Profit at its power and gas unit dropped 39 percent last quarter, and orders at its wind power and renewables unit fell 42 percent.
The source said such problems would continue for at least another five quarters, adding that it would invest to regain its technology leadership. "It will take years until we are back where we were," the person said.
Siemens agreed to buy U.S. oilfield equipment maker Dresser-Rand for $7.6 billion (5.14 billion pounds) last year to increase its exposure to the United States and the shale exploration boom there.
The oil price has since fallen sharply, causing oil and gas firms to axe planned exploration projects, but the Siemens source said on Tuesday the company did not foresee having to write down Dresser-Rand once the acquisition is complete.
Siemens shares were down 0.8 percent at 100.50 euros by 1105 GMT, when the German blue-chip DAX index <.GDAXI> was down 0.9 percent.
(Reporting by Jens Hack; Writing by Georgina Prodhan; Editing by Maria Sheahan and Greg Mahlich)
