Siemens beats forecasts in Q4 but warns on outlook for 2020

Germany today on Diplomacy Pakistan News

Berlin (dpa) – German engineering giant Siemens warned Thursday of slowing global economic growth despite the group posting better-than-forecast quarterly results and growing order books.

The Munich-based company said its industrial operating profit – a key measure of the group’s performance – rose year-on-year by 20 per cent to 2.6 billion euros (2.9 billion euros) in the three months to the end of September.

“The weakening of the global economy accelerated clearly during fiscal 2019,” chief executive Joe Kaeser said in a statement.

The company was also downbeat about the world economic outlook.

“We expect global macroeconomic development to remain subdued in fiscal 2020, with risks particularly related to geopolitical and geo-economic uncertainties,” a company statement said.

Group net profit jumped to 1.3 billion euros in the company’s fiscal fourth quarter ended September from 559 million euros a year earlier.

Analysts had forecast a net profit of 1 billion euros in the quarter ended September. Siemens’ fiscal year ends in September.

Quarterly sales were up 8 per cent to 24.5 billion euros compared with a year earlier, while orders rose four per cent to 24.71 billion euros. Analysts had expected order books to rise to 23.6 billion euros.

Investors were cheered by the results with Siemens’ shares jumping by 4.5 per cent at 113.22 euros in early trading in Frankfurt.

The company also rewarded shareholders by raising its dividend 10 cents to 3.90 euros a share.