Germany's Siemens struck a confident note on the current fiscal year and said today it would raise its dividend after fourth-quarter operating earnings beat forecasts, boosting its shares.
The industrial conglomerate said it had almost completed reshaping the group and reiterated that all its businesses would meet profitability targets in 2007, while sales would grow twice as fast as the world economy.
Shares in Siemens rose on the news, despite uneven results at the group's 11 units whose products range from hearing aids to trains. By 13.09pm, they were up 3.5 per cent at #8364;74.32, the top gainer in a flat German blue-chip index.
"2006 was a year of restructuring. In 2007, we will see execution and increased emphasis on profitable growth," chief financial officer Joe Kaeser said.
Siemens's quarterly operating profit rose 35 per cent, lifted by strong results at healthcare unit Med, where Siemens has spent more than $7 billion on acquisitions in a year.
Siemens also did not book high restructuring charges that had been expected at its struggling IT services unit SBS, which narrowed its loss.
Executives did not say whether the charges would be booked this quarter but said the bulk of restructuring provisions had now been made as the group settles into its new shape, minus most of the telecoms business on which it was founded.
"Overall a mixed bag but more positives than negatives," ABN AMRO wrote in a note. "The overall longer-term trend of improving operations is intact."