Europe's largest industrial conglomerate – Siemens, on Monday upgraded the outlook for full-year profit after quarterly results of its industrial divisions exceeded market expectations for earnings, revenue and order volume.
The business of Siemens in the field of health, transport and energy management ensure the growth of industrial profits in the first quarter of the current fiscal year to 10.4 % of sales versus 10.2 % a year earlier, which was largely based on the weakening of euro and cost reduction.
Based in Munich, the group said it now expects for the current fiscal year, which ends in September, a profit per share at a rate of 6-6.4 euro ($ 6.50 - $ 6.93). Previously earnings forecast were $ 5.90-6.20 euro.
The net profit of Europe's largest industrial conglomerate – Siemens AG in the first quarter of the current fiscal year (October-December 2015) increased by 42% and amounted to 1.56 billion euro, or 1.89 euro per share, against 1.1 billion euro, or 1.30 euro per share, obtained in the same period a year earlier, the company said.
Income from continuing operations rose 34%, to 1.48 billion euro. Siemens Revenue for the period increased by 8% - to 18.89 billion euro, organic growth (excluding exchange rate differences, the sales of assets and other one-off items) amounted to 1%.
Meanwhile, profits of Siemens for the production of energy and gas, which accounts for one fifth of the group's sales declined to 9.5 % in the quarter from 11.3 % a year earlier. Falling oil prices also hit on the profit division which specializes in manufacturing and continuous drives.
Industrial profit of the group as a whole in the first quarter increased 10 % to 1.99 billion euro, which is considerably higher than the average forecast of analysts polled by Reuters, to 1.87 billion.
Comparable sales increased by 1 % to 18.9 billion euro and the volume of orders jumped 19 % to 22.8 billion euro.