Siemens sees brighter outlook after strong quarter

1 min

Berlin (AFP)

The German industrial conglomerate Siemens said Tuesday that full-year earnings would surpass previous estimates, after reporting a 25 percent jump in quarterly net profit.

The company said the stronger earnings in the three months to December 31 reflected healthier operating margins in most of its business lines.

CEO Joe Kaeser has been pursuing a far-reaching restructuring of the company, whose activities range from gas and wind turbines to trains and medical equipment.

"We are sending a clear signal", Kaeser said in a statement, adding that Siemens would "continue to rigorously executive our strategy programme", called Vision 2020.

It raised its forecast for full-year earnings per share to 7.20 euros to 7.70 euros ($7.77 to $8.30), compared with its previous goal of 6.80 to 7.20 euros.

But the company still expects economic headwinds, including unfavourable foreign exchange rates and limited economic growth and investments because of "complex geopolitical environment".

It expects only "modest" revenue growth for the full year, after revenue growth of just one percent in the first quarter, to 19.1 billion euros.

Net profit jumped to 1.94 billion euros, from 1.56 billion in the same period last year.

New orders fell 14 percent in the quarter, to 19.6 billion euros.