Siemens is growing as its competitors struggle
Siemens AG, the largest engineering company in Europe, has experienced formidably strong results in the first half of the year. The energy giant has now increased its 2016 fiscal guidance following these promising results, where the company has seen huge expansion in its energy operations division. Chief Executive Joe Kaeser made a vow to achieve profitability this year, which is looking to be absolutely achievable when looking at Siemen’s current net income.
“The whole world is not so much about capex and expansion – it’s about efficiency,” he told analysts during a conference call last Thursday. “We are leaders in growth at present but there is still a great deal to do,”
Since taking the position of CEO three years ago, Kaeser has cut many of Siemens’ consumer businesses. He has also made large acquisitions in industrial software and energy, hence the recent wind partnership with Gamesa last month.
Siemens reported a net profit of €1.33 billion on June 30th, a higher figure than the same period in 2015. The company’s earnings per share from net income were also higher than expected, ranging from €6.5 to €6.7. The previous estimate was €6 to €6.4.
“Very little of this is down to end markets,” said analysts at Jefferies. “The “excellent” results are instead the result of Siemens reducing costs, delivering large projects on time and on budget and winning share from competitors,”
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