Siemens raises full year profit forecast

German industrial giant Siemens on Wednesday raised its profit forecast for fiscal 2011 to at least 7. 5 billion euros (about 11.1 billion U.S. dollars) due to the strong growth in the second fiscal quarter in 2011 ended in March.


"We've achieved outstanding, broad-based orders growth. We're raising our earnings forecast for fiscal 2011 to at least 7.5 billion euros," said Siemens President and CEO Peter Loescher in a statement that publishes its performance of second fiscal quarter.


Compared with the net income of fiscal 2010, which ended on September 30, 2010, this year's net income has increased by nearly 75 percent, much higher than the previous forecast of 25 percent to 35 percent. However, some analysts still thought this expectation was "pretty conservative" and had "room for improvement."


In the second quarter of fiscal 2011, the new orders of Siemens surged 28 percent to 20.7 billion euros. Revenue climbed seven percent to 17.7 billion euros, while net income rose to 2.8 billion euros, much higher than the 1.5 billion euros recorded in the same period last year, Siemens said.


The largest contributor for the profit surge in the quarter was the energy sector of Siemens, as it got 1.5 billion euros pre-tax revenue from the sale to Areva S.A. of a 34 percent stake in Areva NP, while the emerging countries also played a quite important role, said Siemens.


Siemens said, 31 percent of the total revenue of the second quarter came from emerging countries, while revenue in China and India both witnessed 20 percent of increase. In Saudi Arabia, the group has won a contract worth more than 1 billion U.S. dollars for components for electricity and desalination plants.
(Source:http://news.xinhuanet.com)