FRANKFURT, Germany – Industrial machinery maker Siemens AG says net profit fell 25 percent in its most recent quarter as revalued financial derivatives and lower earnings at its key power and gas business weighed on the bottom line.
Net income fell to 1.095 billion ($2.184 billion) in the October-December quarter, the company's fiscal first. That was down from 1.457 billion euros a year previously.
CEO Joe Kaeser said Tuesday net profit was hurt by reassessment of financial derivatives due to the low interest-rate environment. That came on top of a 39 percent drop in profits at its business making power generating turbines.
Orders — a key determiner of future earnings — declined 11 percent to 18.01 billion euros. That was partly due to a large, 1.6 billion euro order in the year-earlier quarter.