Siemens reveals loss

German group Siemens has forecast a challenging year ahead after it revealed a €1.063bn (£956m) loss for the fourth quarter of the 2009 fiscal year.

The group’s revenue dropped to €76.7bn compared with €77.3bn in 2008.

However, the figures profited from a high order backlog, which fell only slightly in 2009 to €81.2bn from €83.1bn a year earlier.

New orders for 2009 came in at €79bn.

On an organic basis, excluding currency translation and portfolio effects, the order level was 14 per cent lower than in the previous year.

The group said that the trend was likely to continue in 2010.

It released a statement saying: ‘Following a double-digit decline in orders in fiscal 2009, Siemens expects only a mid single-digit percentage decline in organic revenue in fiscal 2010.’

During the period, Siemens maintained its level of investment in research and development in an attempt to stimulate organic growth.

Expenditure on that area climbed three per cent to €3.9bn in fiscal 2009.

The group now plans to continue its focus on its core businesses and further expand its environmental portfolio.

Chief executive Peter Loescher said: ‘We have strengthened our portfolio by the addition of Solel.

‘We see substantial further potential worldwide in the area of environmental technology.

‘To ensure the sustainable viability of businesses that have been particularly affected by the crisis, we are continuing to rigorously implement all necessary measures.

‘The overall market environment will remain challenging in 2010.’