Siemens AG reported Thursday its first-quarter net profit was down 16 percent due to a EU423 million (US$550.11 million) fine from the European Union, but that its underlying earnings were improving. The Munich-based technology company said net profit in the three months through Dec. 31 fell to EU788 million (US$1.02 billion) from EU939 million in the same period the year before, the company said in a statement. First-quarter sales gained 6 percent to EU19.07 billion (US$24.8 billion).
The fine arose from a European Commission antitrust investigation, which penalized Siemens for price-fixing among providers of a gas-insulated switchgear in the power transmission and distribution industry.
Excluding the fine, Siemens' net profit was above the EU962 million (US$1.3 billion) forecast by analysts polled by Dow Jones Newswires.
"In terms of the underlying performance of our business, the first quarter got the fiscal year off to a strong start," said Siemens CEO Klaus Kleinfeld. "Order growth was particularly satisfying, considering that the prior-year basis of comparison was already quite high."
Siemens said it expects all its divisions to reach their goals.
Siemens shares were at EU77.96 (US$101.39) to start the day in Frankfurt.
