Siemens, Europe's largest engineering company, cut its full-year forecast after quarterly earnings missed analyst estimates amid charges for failed wind energy transmission projects and the delayed delivery of trains.

Net income from continuing operations will approach the low end of its €4.5 billion to €5 billion target, the company said yesterday.

Siemens now also predicts a “moderate” decline in organic sales, after a previous forecast for stable sales.

The reduced forecast is a setback for chief executive Peter Loescher, who is implementing a plan to trim costs after acknowledging in November he had been slow to react to the economic downturn. Mr Loescher has also come under pressure to refocus Siemens after deals he supervised soured. – (Bloomberg )