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Self-help starts to pay off at Siemens

Tuesday, January 26, 2016 - 01:32

Shares in Siemens were indicated 3.6 percent higher ahead of the market open after Europe's biggest industrial group raised its full-year earnings forecast on strong first-quarter results. Sonia Legg reports

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Siemens is running ahead of schedule The German industrial group has raised its full-year guidance after positive first-quarter results (SOUNDBITE) (German) SIEMENS CHIEF EXECUTIVE, JOE KAESER, SAYING: "We had a strong start into the new business year and considering the difficult geopolitical and economic environment we think this is a decent result." CEO Joe Kaeser had good reason to gloat - Siemens has done better than its competitors. One division in particular making progress in - of all places - China. (SOUNDBITE) (German) SIEMENS CHIEF EXECUTIVE, JOE KAESER, SAYING: "Our medical equipment has on all levels, and I really emphasise on all levels, delivered a very strong first quarter." Industrial profit was up 10 percent - still below General Electric's 18 percent - but the results were more upbeat than GE and Philips. A weak euro helped - and some other factors, says Rabobank's Jane Foley. (SOUNDBITE) (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "Some of the reasons that their bottom line looks so good is for one-off accounting things that they have gone through rather than proof that the demand they have seen will continue." Siemens shares soared 7 per cent to their highest level since the China-led turmoil took hold of global markets at the beginning of the year. But there are headwinds - power and gas margins are likely to hit a new low thanks to low energy prices. Siemens $7.8 billion acquisition last year of U.S. oil equipment maker Dresser-Rand perhaps not made at an ideal time

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Self-help starts to pay off at Siemens

Tuesday, January 26, 2016 - 01:32