Siemens profits jump 29pc

29 Jul 2004

Electronics giant Siemens has reported a 29pc surge in its third quarter profits to €815m. The company reported that orders rose 11pc to €19bn, up 21pc on the previous year.

Across its various operations, Siemens said it achieved double-digit growth and higher profit margins over the previous year. Top earnings performers included automation and drives, power generation, medical solutions and automotives. The company conceded that challenges remained at Siemens Business Services and its transportation systems division.

Nonetheless the company continued to be cash flow positive with net cash from operations and investment activities of €279m, up from €266m a year ago.

Siemens CEO Heinrich Pierer said that the emphasis going forward is profit and growth. “Order intake is developing well, supported particularly by a very strong June. Also, net income is progressing ahead of our expectations and should allow us to exceed our own earnings objectives for the full year.

“These trends show that improvement in the broader macroeconomic environment is now arriving in our industry, and that we are succeeding with our enterprise-wide initiative, ‘Go for profit and growth’. To ensure our earnings momentum into the next fiscal year we are targeting further operational improvements by the groups,” Pierer said.

By John Kennedy