The German engineering giant Siemens unveiled a radical corporate restructuring on Wednesday after the company posted a mixed set of quarterly results.

Net profit for the group’s second quarter, which ended March 31, climbed 12 per cent from the same three months of 2013 to €1.15 billion ($1.6 billion) despite a slump in orders, the company said.

The release of Siemens’ latest quarterly profit report came as the group’s chief executive, Joe Kaeser, set out details of a major overhaul of the company, including streamlining its management and spending €950 million buying energy assets from Rolls Royce.

The company unveiled the makeover as it considers whether to launch a formal takeover bid for the energy business of French rival Alstom, which is already facing takeover moves from US-based General Electric.

While Siemens’ order books shrunk 18 per cent year-on-year to €18.43 billion in its second quarter, revenues declined 2 per cent to €17.45 billion.

Kasener’s restructuring plan has been attacked by union leaders, who said it would result in the loss of thousands of jobs.

“The reorganisation cannot in any way act as a cover for a programme to be misused so as to reduce costs or to cut jobs,” said Juergen Wechsler, who heads the IG Metall union in the southern state of Bavaria, where Siemens is based.

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