However, the Munich-based company said full-year net profit rose by 46 per cent, climbing to 5.9 billion euros from the previous year's 4 billion euros.

The fourth-quarter figure compared with a loss of 74 million euros a year earlier. Siemens said that a major factor was a 1.16 billion euro loss from discontinued operations, related mainly to its sale of a 51 per cent stake in the Siemens Enterprise Communications unit.

Siemens also has said it would book a charge of about 1 billion euros in the fourth quarter to settle any costs related to an ongoing bribery investigation. The scandal over bribes allegedly paid to secure contracts abroad already has cost Siemens millions in fines and damaged its reputation.

Sales for the quarter rose 4 per cent to 22.2 billion from 21.3 billion euros a year earlier. Earnings before interest, taxes, depreciation and amortisation fell 11 percent to 2.2 billion euros from 2.5 billion euros.

Full-year EBITDA was up 4 per cent, rising to 8.5 billion euros ($10.5 billion) from 8.2 billion euros.

For the 2008-9 fiscal year, Siemens said it expects sales to increase at twice the rate of global gross domestic product - its standard forecast - despite the difficult economic environment.

The company said it expects pretax profit of between 8 billion and 8.5 billion euros.

Siemens said that a key source of confidence was an order backlog of roughly 85 billion euros.

'In contrast to our competitors, we are not being forced to make substantial revisions to our order backlog,' Chief Executive Peter Loescher said in a statement.

'Unlike our competitors, we do not book an order until the financing for that order has also been secured.' Shares of Siemens were trading 2.2 per cent higher at 41 euros in Frankfurt. -- AP