Post date: May 04, 2011 2:25:0 PM
Siemens reports stronger than expected 2nd quarter results and raises its full year outlook, partly thanks to demand from emerging markets.
GERMANY-SIEMENS/BMW - Europe's biggest engineering conglomerate has reported stronger than expected second quarter results partly due to demand from emerging markets.
Siemens makes a wide range of products from hearing aids and light bulbs to fast trains and power plants.
It's considered a bellweather for Germany's economy and CEO Peter Loescher said the company has seen growth in all areas.
SIEMENS CHIEF EXECUTIVE PETER LOESCHER SAYING:"Siemens continues to have a very strong growth profile and I think the quarter's just an expression of it. It's broad based, it's over a third of our order intake coming from the emerging markets."
The results were boosted by the one and a half billion euro sale of Siemens' stake in the German engineering firm Areva.
Revenue from China and India was up 20 per cent - thanks to new contracts in the January to March quarter.
Siemens has now raised its full year outlook and forecasts net income of 7.5 billion euros.
But the company acknowledges last year's steep bounce back from recession will be difficult to repeat.
SIEMENS CHIEF EXECUTIVE PETER LOESCHER SAYING:
"We have to bear in mind that we have, will have a certain baseline effect because Q3, Q4 2010 were already significantly stronger quarters compared to the first half of 2010. So there will be a certain levelling of the profile due to baseline effects."
Siemens isn't the only German firm benefitting from emerging markets.
BMW's operating profits quadrupled to 1.9 billion euros, beating analysts' expectations and sending shares up almost 2 per cent.
The result was fuelled by strong sales in China and demand for smaller, more fuel efficient cars in the United States.
Kirsty Basset, Reuters.