Profits Jump 25 Percent at Siemens

Profits Jump 25 Percent at Siemens

“With a strong first quarter and a considerably raised outlook for fiscal 2017, we are sending a clear signal. I am proud of my global Siemens team that has been working hard and has delivered convincing success. We will continue to rigorously execute our strategy program Vision 2020 to even further strengthen our innovation power and customer proximity.” — Joe Kaeser, President and Chief Executive Officer of Siemens AG

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FRANKFURT, Germany (AP) — Siemens AG, the German maker of power turbines, trains and medical machines, said Tuesday that its net income rose 25 percent to 1.93 billion euros ($2.06 billion) for its most recent quarter and raised its earnings prediction for the year.

The Munich-based company said the strong performance in the final three months of last year — the company’s fiscal first quarter — allowed it to raise its outlook for all of fiscal 2017. It now expects earnings per share in a range of 7.20-7.70 euros, up from 6.80-7.20 euros previously.

The company credited strong execution of orders from its backlog for boosting revenue at its power and gas business. It touted its progress toward completing three power stations at in Egypt that will supply electricity to 45 million people.

Revenue rose 1 percent to 19.11 billion euros.

Earnings got a 172 million euro boost from Siemens contributing its eCar business to a 50-50 joint venture with Valeo that makes powertrains for electric cars. Orders, which are a key indicator for future earnings, fell 14 percent in the quarter from the year-ago quarter due to fewer big-ticket orders.

Siemens CEO Joe Kaeser was to provide more detail at a news conference Wednesday.

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