Siemens Q3 boosted by industry, energy projects

Tag : industry profile

By Nicola Leske
MUNICH (Reuters) - German engineering group Siemens (SIEGn.DE: Quote , Profile , Research ) posted stronger-than-expected third-quarter results thanks tomajor contracts in its two largest sectors, but is braced for aslowdown in new orders.
The results buoyed Siemens stock, which hit its highest level sinceMarch 14 and was the biggest positive weight in Germany's blue-chipDAX index .GDAXI and second-biggest in the main European index . Shares rose 5.2percent to 77.01 euros by 1050 GMT.
Siemens is in the midst of a major overhaul and regrouped itsdivisions into three main sectors to benefit from global growthtrends -- energy, industry and health care -- at the beginning ofthis year. It began reporting total profit for those sectors in thequarter ended June 30.
Profit for the core business grew 33 percent to 2.08 billion eurosled by strong growth in the industry and energy sectors, andboosted by the booming markets for energy production.
Chief Executive Peter Loescher said on a conference call withjournalists that "we have had an excellent quarter but expect tosee a flattening dynamism in the coming quarters."
Siemens reiterated on Wednesday it expected revenue, excludingacquisitions, to expand twice as fast as global economic growththis fiscal year and next.
But it said it sees more challenging conditions in the globaleconomy in fiscal year 2009, when it aims to reach a total profitfor the three sectors of 8-8.5 billion euros.
Growth in income from continuing operations is expected to exceedgrowth in total sector profit, Siemens said, adding that allforecasts exclude any impact from worldwide probes of whetherSiemens paid bribes to win contracts. Continued...