Siemens swings back to black
THE German economy breathed a sigh of relief after bellweather business Siemens stormed back in to the black with a 40 per cent hike in operating profit.
The jump to €2.3bn (£1.92bn) beat even the most optimistic forecasts. In another positive sign, new orders also shot up, prompting the firm to increase its profit guidance for the second time in 12 months.
The results, which broke a streak of nearly two years of declining sales, were flattered by a two year programme of swingeing cost cuts which have stripped €1.2bn from its expenditure. The euro’s recent weakness against key currencies, which makes Siemens’ exports cheaper to pay for in foreign currencies, also helped boost results.
The last time Europe’s number one engineering conglomerate posted an increase in both new orders and sales was in the quarter to the end of September 2008.
Chief executive Peter Loescher said: “We see solid growth across all parts of our businesses, and particularly strong growth in emerging markets.”
Siemens, which makes everything from lightbulbs to fast trains, said it saw a recovery across its businesses, particularly those more sensitive to cyclical or economic swings.