Siemens has reported a net loss of €2.4bn (£2bn) in preliminary figures for the fourth quarter of 2008, but remains optimistic about future growth.
Revenues for the Munich-based company rose by seven per cent to €21.651bn and orders were up four per cent to €22.205bn. Free cash flow from continuing operations was €2.786bn, a nine per cent increase compared to the fourth quarter a year earlier.
However, continuing operations reported a loss of €1.259bn following pre-tax transformation costs of €1.539bn, an endowment of €390m to the Siemens Foundation and a loss of €1bn relating to ongoing corruption investigations.
Net income also incurred losses from discounted operations relating mainly to a divestment of a 51 per cent stake in Siemens Enterprise Communications.
Despite the company’s losses, Siemens remains confident of increased sales due to a strong order backlog.
Peter Löscher, chief executive of Siemens, said: ‘Coming out of our transition year in fiscal 2008, we confront new challenges in the macroeconomic environment. From our position of relative strength we intend to win market share profitably. Organic growth remains our focus, and despite the macroeconomic adversity we confirm our growth target.’