Siemens raises outlook following quarterly growth

Siemens reported growth in orders and sales that outpaced those of its main rivals despite global political uncertainty

Siemens expect large orders in Europe and the Americas to drive third-quarter orders.
Siemens expect large orders in Europe and the Americas to drive third-quarter orders.

Germany-based Siemens raised its full-year earnings forecast for the second time this year after large energy projects helped to take its third-quarter results beat expectations and sent its shares to a 12-month high.

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.

Chief executive Joe Kaeser said: "We are making good progress with execution of Vision 2020 and in the third quarter again achieved convincing results, particularly compared to the market.

"I am proud of my global team which delivered excellent performance, especially with regard to growth, in an increasingly difficult market environment."

Siemens expect large orders in Europe and the Americas to drive third-quarter orders up by 6% year-over-year, to €21.1bn.

Revenue is recorded at 5% higher at €19.8bn.

Large orders, particularly in power and gas and wind power and renewables, continued to drive order growth, whereas industrial business order backlog at new high with €116bn.

In energy management, the company received received lower orders in the region comprising Europe, C.I.S., Africa and the Middle East, whereas it witnessed sharp growth in Asia, Australia including a large order in the ultra high-voltage direct current (UHVDC) transformer business.

Kaeser said: "We raise our previous expectation for basic EPS from net income in the range of €6.00 to €6.40 to the range of €6.50 to €6.70. We continue to expect for fiscal 2016 moderate revenue growth, net of effects from currency translation.

"We continue to anticipate that orders will materially exceed revenue for a book-to-bill ratio clearly above 1. This outlook excludes charges related to legal and regulatory matters."

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