Siemens thrives on full order books
August 4, 2016
Siemens announced Thursday it was raising its profit forecast once again after earnings in its core businesses had jumped by 20 percent in the most recent quarter.
Earnings in the core segments totaled 2.2 billion euros ($2.4 billion), sending up the firm's shares in pre-market trading.
"The latest profit forecast exceeds analysts' expectations and should lead to an even higher stock value in the course of the day," a trader from the Frankfurt Stock Exchange told Reuters.
Order books bursting at the seams
Siemens reported its new orders - a key indicator of future earnings – had risen by 6 percent, making the company's order books fuller than ever before.
Third-quarter revenues increased by 5 percent to 19.8 billion euros, with CEO Joe Kaeser seeing progress in streamlining the firm's multiple businesses.
The group's overall net income fell slightly to 1.372 billion euros from 1.376 billion euros in the April to June quarter one year ago due to financial factors, including taxes and interest.
Siemens remains one of the world's leading manufacturers of trains, wind and gas power generation equipment and medical imaging devices.
hg/mrk (AP, Reuters)