Siemens reviews big projects for risks

Siemens is reviewing its large projects for potential business risks, the company said in an email response to NewsWire18's query on the impact of its parent company slashing its earnings forecast for 2008.

Shares of Siemens today traded between lows of Rs 644 and highs of Rs 685 on the National Stock Exchange. Siemens shares provisionally closed at Rs 652 today, down 0.4 per cent, having shed some of its earlier gains on this news.

On Monday, Siemens AG made an "ad-hoc announcement" warning investors it had cut its earnings forecast for 2008 after the company reviewed its orders.

Siemens AG January-March earnings would be hit by ¤900 million (Rs 5,800 crore), which will be "the largest piece of any additional financial burdens for 2008," it said.

The Munich-based engineering major said a review of its projects in fossil power generation division in the energy sector, mobility division in the industry sector, and information technology solutions and services had indicated an "adverse effect" to earnings.