MUNICH (Reuters) – Shares in Siemens (SIEGn.DE) were indicated 3.6 percent higher ahead of the market open on Tuesday after Europe’s biggest industrial group raised its full-year earnings forecast on strong first-quarter results.
Siemens late on Monday reported industrial profit, revenue and orders that beat market expectations, driven by its healthcare, transportation and energy-management units and helped by the weak euro and ongoing cost cuts.
“We do have quite a strong amount of self-help potential,” Chief Executive Joe Kaeser told CNBC television, ahead of Siemens’ annual shareholders’ meeting to be held later on Tuesday. “We cannot make our customers buy more but we can do more productivity in our company and innovate more.”
The results and upbeat outlook contrasted with those of rivals General Electric (GE.N) and Philips (PHG.AS), which have been hit by slowing growth in China and weak oil prices that have depressed industrial demand.
“We were most surprised by the strength in Healthcare with 8 percent order and 11 percent organic sales growth, while the slowdown in the short-cycle Digital Factory impacted margins as expected,” wrote Barclays, which rates Siemens “underweight”.
Siemens said it had seen double-digit growth in healthcare orders from China. Philips also reported a rebound in healthcare demand in China, with 15 percent order growth in the quarter for its medical equipment.
(Reporting by Georgina Prodhan; Editing by Maria Sheahan)
