Siemens has posted better-than-expected earnings in its first quarter, helped by robust demand from rapidly growing emerging economies.
Europe's biggest engineering conglomerate said today net profit from continuing operations -- which excludes units to be spun off -- rose 17 per cent to €1.79 billion in the three months to December, driven by businesses sensitive to economic swings.
Analysts in a Reuters poll had on average expected net income from continuing operations to decline 3.7 per cent to €1.47 billion.
Siemens, steelmaker ThyssenKrupp and others in Germany's capital goods industry have profited from emerging economies' appetite for German luxury cars, high-end engineering machinery and industrial equipment.
Underlining the rebound in the euro zone's biggest economy, economic institute Ifo said on Friday German business morale rose to its highest level in 20 years in January as trade with China and other emerging countries picked up.
US rival General Electric on Friday reported better-than-expected quarterly earnings due to strong emerging-market demand.
Meanwhile, Philips Electronics NV, whose X-rays and CT scans compete with Siemens products, saw its shares tumble yesterday as poor TV sales hit its lifestyle division in the fourth quarter.
Reuters
