Self-help starts to pay off at Siemens

Sharing is Caring

Shares in Siemens were indicated 3.6 percent higher ahead of the market open after Europe’s biggest industrial group raised its full-year earnings forecast on strong first-quarter results. Sonia Legg reports

Self-help starts to pay off at Siemens

Siemens is running ahead of schedule

The German industrial group has raised its full-year guidance after positive first-quarter results

(SOUNDBITE) (German) SIEMENS CHIEF EXECUTIVE, JOE KAESER, SAYING:

“We had a strong start into the new business year and considering the difficult geopolitical and economic environment we think this is a decent result.”

CEO Joe Kaeser had good reason to gloat – Siemens has done better than its competitors.

One division in particular making progress in – of all places – China.

(SOUNDBITE) (German) SIEMENS CHIEF EXECUTIVE, JOE KAESER, SAYING:

“Our medical equipment has on all levels, and I really emphasise on all levels, delivered a very strong first quarter.”

Industrial profit was up 10 percent – still below General Electric’s 18 percent – but the results were more upbeat than GE and Philips.

A weak euro helped – and some other factors, says Rabobank’s Jane Foley.

(SOUNDBITE) (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING:

“Some of the reasons that their bottom line looks so good is for one-off accounting things that they have gone through rather than proof that the demand they have seen will continue.”

Siemens shares soared 7 per cent to their highest level since the China-led turmoil took hold of global markets at the beginning of the year.

But there are headwinds – power and gas margins are likely to hit a new low thanks to low energy prices.

Siemens $7.8 billion acquisition last year of U.S. oil equipment maker Dresser-Rand perhaps not made at an ideal time

Tags : Siemens, starts, Selfhelp

Related Videos :

You may also like...

Leave a Reply