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    « Bombardier, Italian partner in lead to get high-speed train contract. | Main | Subway tunnels, not just stations, set to get Wi-Fi, cell signals »
    Tuesday
    Aug032010

    Siemens Posts $1.9 Billion Quarterly Profit

    FRANKFURT — Siemens, an electronics and engineering giant that is a bellwether for the global and German economies, said Thursday that quarterly profit rose 9 percent to 1.44 billion euros, or $1.9 billion, as a weaker euro and strong growth in emerging markets offset declines in Europe.

    Siemens, whose products include wind generators, high-speed trains and X-ray scanners, said salesin the three months through June rose 4 percent to 19.2 billion euros compared to the same period a year earlier, and new orders rose 22 percent to 20.1 billion euros compared to the same period in 2009.

    Operating profit rose 40 percent to 2.3 billion euros.

    “Such order growth last occurred in 2008,” Peter Löscher, Siemens C.E.O., said in a statement.

    All the figures were better than analysts’ expectations. Analysts polled by Reuters had expected operating profit of 2.1 billion euros.

    Siemens also raised its forecast for full-year operating profit to 7.5 billion euros, from its previous forecast of 6 billion to 6.5 billion euros issued earlier this year.

    With operations in almost every country, Siemens, based in Munich, is an indicator of the state of the global economy as well as of Germany’s export-oriented economy.

    Siemens said that sales grew more than 14 percent in China, 23 percent in India and 4 percent in the United States, without adjusting for currency fluctuations. Sales also rose 9 percent in Germany, despite an overall decline in Europe.

    Siemens said all of its three main business areas recorded higher sales and earnings. The industry business, which makes equipment used to automate factories, increased sales 7 percent and new orders 33 percent as manufacturers around the world ramped up production. Profit rose 69 percent to 900 million euros, helped also by the weaker euro.

    Profit in Siemens’s energy business rose 7 percent to 925 million euros. Siemens said that while the market for equipment and services for fossil power generation was “challenging,” though still profitable, it recorded big gains in supplying equipment for offshore wind farms.

    Siemens’s profit from equipment like CT scanners and other health-care products soared 87 percent to 506 million euros, led by higher sales in Asia, where rising living standards are increasing demand for modern medical equipment.

     

    Originally written by JACK EWING at New York Times

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