Frankfurt, Germany — ESI-AFRICA.COM — 25 January 2011 – Siemens “’ Europe’s biggest engineering conglomerate “’ beat profit forecasts in its first quarter to 31 December 2010, due to robust demand in fast-growing emerging economies, and predicted that signs for future sales were strong
“Orders and revenue grew in all regions, particularly in emerging markets,” said Siemens chief executive Peter Loescher. He added that order intake “’ an indicator of future sales “’ had risen 160% from India and 49 percent from China.
Siemens won a contract to build power plants in Gujarat and Ahmedabad, both in India, and will be supplying the plants with gas and steam turbines, generators, electrical and control systems.
“Order intake was good, much better than I had expected. Very strong profitability in the Industry sector, with some weakness in the Renewables,” said Commerzbank analyst Ingo-Martin Schachel.
Overall new orders rose, including the supply of gas turbines for a GS Electric power plant in South Korea, a rolling mill for Chinese steelmaker Xiangtan Iron, a wellhead compression solution for Russia’s Technogarant, and transmission technology for power grids in Brazil and Paraguay.
China “’ where Siemens generated nearly 8% of group revenue last year “’ has vaulted past the United States into pole position as buyer of German engineering products.
Siemens, whose products range from steam turbines and fast trains to hearing aids and light bulbs, made around 30% of sales in emerging markets last year, and has been increasingly making lower-priced products to suit demand.
Net profit from continuing operations rose 17% to 1.79 billion Euros (US$2.44 billion) in the quarter, beating an average forecast of 1.47 billion Euros (US$2billion).