Siemens Q2 profit down on charges

Siemens AG, Europe's largest engineering company, said second-quarter profit dropped after a review of orders led to charges at the power and transport units.

Net income in the three months through March fell to 384 million euros from 1.2 billion euros a year earlier, Siemens said yesterday. Sales rose 0.5 percent to 18.09 billion euros.

Siemens said on March 17 earnings in the period would be reduced after a review of its order book found inconsistencies, sending the stock 17 percent lower that day. Chief Executive Officer Peter Loescher said at the time the move was a "painful but necessary step". The company said yesterday the costs stemming from the review were 857 million euros in the quarter.