Siemens sees green boost to order book

City A.M. Reporter
GERMAN industrial conglomerate Siemens said it expects to win new orders of around &euro;15bn (&pound;12.7bn), mostly green projects, from economic stimulus programmes worldwide in the next three business years.<br /><br />Of that figure, &euro;6bn would come from green technology contracts, &ldquo;significantly&rdquo; increasing revenues from the company&rsquo;s environmental portfolio in the future.<br /><br />Nonetheless, Siemens still expected business to weaken in the third and fourth quarters of the current fiscal year, said chief executive Peter Loescher.<br /><br />&ldquo;That&rsquo;s because we expect these stimulus programmes to have a stabilising effect on our business -- and then on our new orders -- next year at the earliest,&rdquo; he added.<br /><br />Siemens, which makes trains and turbines as well as hearing aids and light bulbs, is a bellwether of Germany&rsquo;s economy, the largest in the eurozone.<br /><br />Loescher said the decline in global economic growth appeared to be slowing down.<br /><br />&ldquo;Therefore we can realistically hope that we&rsquo;re now approaching the low point. However, it is still very difficult to predict how long the economy will remain at this depressed level, and when and at what rate of incline it will once again rebound,&rdquo; he added.<br /><br />Siemens finance head Joe Kaeser said sales from green projects could grow 10 per cent a year eventually.