By Philipp Grontzki

Siemens AG, Europe's biggest engineering company, said earnings this quarter will be about €900m lower because of order delays and cancellations at the energy, transport and technology units.

Siemens shares fell as much as 13pc in Frankfurt trading, the biggest drop in at least 18 years. The energy division will have the largest charge, which Siemens has estimated at about €600m. About €200m will come from the transport unit, while the technology division will have costs of about €100m.

The markdown comes a month after chief executive Peter Loescher said the company is likely to meet its earnings goals this year. Loescher, the first outsider to lead Siemens in its 160-year history, called the move a "painful but necessary step" as he overhauls the company his predecessor, Klaus Kleinfeld, left in the wake of a bribery scandal last year.

Siemens fell as much as €10.59 to €71.19 in Frankfurt trading, cutting its market value by about €9.7bn. Yesterday's decline brings this year's drop to 36pc, making Siemens the fifth-worst performer on Germany's benchmark DAX 30 Index in the period. (Bloomberg)