Siemens AG (SI) Thursday said third-quarter net profit fell 8% as margins narrowed in parts of its business and order intake slumped by 28% due to the economic downturn, but it kept its outlook for full-year operating profit in its core sectors above last year's level of EUR6.6 billion.

Net profit for the quarter ended June 30 fell to EUR1.26 billion, from EUR1.37 billion a year earlier. Siemens bottom line, however, was boosted by one-time gains from disposals. Siemens booked a EUR309 million gain from the sale of its 50% stake in Fujitsu Siemens Computers to joint venture partner Fujitsu Ltd. (FJTSY) and another EUR221 million gain from the sale of real estate.

In particular, margins for shorter-cycle products in the industrial conglomerate's industry sector are under pressure. The margin at the industry automation division plunged to 5.4% from 21.2%, while the margin at the drive technology division fell to 10.1% from 16.8% and at the Osram lighting division slumped to 0.9% from 10%. The third-quarter operating profit in Siemens' industry sector more than halved to EUR534 million compared with the prior year quarter.

Among Siemens' core units, the industry sector was worst hit by weakening demand due to the economic downturn and Siemens said the market environment remains difficult.

Meanwhile, operating profit at its energy division was EUR863 million, up from EUR615 million, benefitting from strong order intake in recent quarters. Operating profit in the healthcare sector was down to EUR270 million from EUR326 million, weighed by a charge of EUR128 million in particle therapy contracts.

Overall, Siemens' operating profit at its core units fell 21% to EUR1.67 billion.

Order intake in the third quarter was EUR17.16 billion, down 28% on the year, with sales down 4% to EUR18.35 billion. Siemens' order backlog was EUR84.3 billion at the of the third quarter down from EUR87 billion from the end of the second quarter.

Siemens' third quarter results missed analysts' expectations for order intake of EUR19.54 billion and sales of EUR18.77 billion, but beat the expectations for operating profit of EUR1.54 billion, according to a Dow Jones Newswires' poll of 16 analysts.

Siemens competes with General Electric Co. (GE), Alstom SA (ALO.FR) and Philips Electronics NV (PHG).

Wednesday, Siemens shares closed in Frankfurt up 3% at EUR57.05 in an overall higher market.

Company Web site: www.siemens.com

-By Archibald Preuschat, Dow Jones Newswires, +49 211 138 7218, archibald.preuschat@dowjones.com