Germany’s Siemens warned that demand for products such as industrial automation and drive technologies was weakening as it posted a decline in new orders for its fiscal first quarter.

“For the rest of the year, we don’t expect any tailwinds from the global economy to help us reach our ambitious goals,” chief executive Peter Loescher said yesterday.

Siemens, an industrial bellwether that makes products ranging from fast trains and gas turbines to hearing aids, posted a three per cent decline in new orders in the three months through December, to €19.1 billion.

At its Industry business, which generates about a quarter of group revenue, new orders were down eight per cent as the market environment grew more challenging.

But overall, new orders for the group were still better than the €18.9 billion expected by analysts, and Siemens confirmed its full-year outlook.

Its net profit from continuing operations eased by one per cent to about €1.3 billion – beating a consensus of €1.1 billion. For the full year through September, it sees profit declining to between €4.5 billion and €5 billion.

That compares with €5.18 billion last year, due to about €1 billion of costs from a €6 billion savings programme announced late last year and the impact of a change in accounting standards.

Siemens has come under pressure to cut costs and focus on its most profitable businesses to close a gap with rivals such as ABB and General Electric.