Siemens beats consensus
Friday, 9 November 2007
MUNICH Nov 8 (Reuters): Industrial group Siemens (SIEGn.DE) delivered stronger quarterly results than expected, raised profitability targets and announced a 10 billion-euro ($14.6 billion) share buyback programme.
Siemens shares rose as much as 5.5 percent against weak European markets Thursday as new Chief Executive Peter Loescher delivered on his promise to reduce complexity and raise transparency at the scandal-hit German conglomerate.
All of Siemens' new core businesses -- industry, energy and healthcare -- beat expectations in the July-September quarter as the company said it had benefited from favorable macroeconomic conditions despite a slowdown in U.S. growth.
Next year, Siemens said, sales and orders should increase at twice the rate of global GDP growth while operating profit should grow at least twice as fast as the top line.
By 5:17 a.m. EST, Siemens shares were up 5 per cent at 99.9 euros, making the stock one of the top gainers in a 0.2-per cent weaker German blue-chip DAX.
"We regard the buyback issue as highly material ... and underlying results appear robust," Morgan Stanley analysts wrote in a note. "It is also worth mentioning that there is significantly greater transparency in the report."
Siemens more than doubled quarterly operating profit to 1.990 billion euros from 749 million euros a year ago. New orders rose 21 percent to 21.328 billion euros while sales rose 9 percent to 20.201 billion.
The company said it would raise its dividend for 2006/07 to 1.60 euros per share from 1.45 euros per share a year ago.
"We have full confidence in the operational strength of our company," Loescher told a news conference.
Siemens shares rose as much as 5.5 percent against weak European markets Thursday as new Chief Executive Peter Loescher delivered on his promise to reduce complexity and raise transparency at the scandal-hit German conglomerate.
All of Siemens' new core businesses -- industry, energy and healthcare -- beat expectations in the July-September quarter as the company said it had benefited from favorable macroeconomic conditions despite a slowdown in U.S. growth.
Next year, Siemens said, sales and orders should increase at twice the rate of global GDP growth while operating profit should grow at least twice as fast as the top line.
By 5:17 a.m. EST, Siemens shares were up 5 per cent at 99.9 euros, making the stock one of the top gainers in a 0.2-per cent weaker German blue-chip DAX.
"We regard the buyback issue as highly material ... and underlying results appear robust," Morgan Stanley analysts wrote in a note. "It is also worth mentioning that there is significantly greater transparency in the report."
Siemens more than doubled quarterly operating profit to 1.990 billion euros from 749 million euros a year ago. New orders rose 21 percent to 21.328 billion euros while sales rose 9 percent to 20.201 billion.
The company said it would raise its dividend for 2006/07 to 1.60 euros per share from 1.45 euros per share a year ago.
"We have full confidence in the operational strength of our company," Loescher told a news conference.