Siemens lifts profit forecast, adapts to low-growth world

  • Business
  • Thursday, 04 Aug 2016

A sign with a new street name of Siemens AG's new headquarters is seen during the official opening in Munich, Germany June 24, 2016. REUTERS/Michaela Rehle

Siemens  adapts to low-growth world

FRNKFURT: Siemens reported growth in orders and sales that outpaced those of its main rivals despite global political uncertainty that is dampening customers’ appetite to invest in areas from oil and gas to industrial plants and transport projects.

A switch in focus to helping customers save money through smarter automation and maintenance of existing equipment was allowing Siemens to profit in a low-growth global environment, said chief executive Joe Kaeser.

“The whole world is not so much about capex and expansion -- it’s about efficiency,” he told analysts on a conference call on Thursday.

Kaeser credited strong execution, cost discipline and improvements in underperforming businesses for quarterly increases of 9% in orders, 7% in sales and 20% in industrial profit.

That compares with a decline in sales and orders at Swiss engineering group ABB, a 16% drop in new orders at US rival General Electric and a sales forecast cut by US industrial automation provider Rockwell.

Siemens expects annual earnings per share of 6.50 to 6.70 euros, up from a previous forecast of 6.00 to 6.40 euros.

“We are leaders in growth at present but there is still a great deal to do,” Kaeser told reporters on a conference call. - Reuters

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