By Dow Jones Business News,
January 28, 2014, 03:45:00 AM EDT
FRANKFURT-- Siemens AG's profit rose in its fiscal first quarter as charges fell and orders jumped, the German
industrial conglomerate said Tuesday.
Net profit increased almost one-fifth to 1.43 billion euros ($1.96 billion) in the three months to December. Earnings
had been burdened by charges a year earlier. Siemens launched a broad restructuring program in 2012 to catch up with
"We continue to focus on our productivity program," said Chief Executive Joe Kaeser.
Order intake grew 8.7% to EUR20.84 billion at Siemens' continuing operations. The increase came mainly from large
contracts for trains and wind turbines. Siemens received major orders for wind farms from the U.S. and Norway, and for
subway trains from Saudi-Arabia. The orders should translate into growing future sales when Siemens delivers the goods.
The figures indicate that Siemens' business has improve under the new CEO. Mr. Kaeser, the company's former financial
chief, was appointed CEO in August to replace Peter Loescher, who was ousted after repeatedly missing financial targets.
The company, whose products range from power plant equipment to hearing aids, is faring better than some large rivals.
French competitor Alstom S.A. lowered its profit target earlier this month and Swiss-Swedish giant ABB Ltd.'s fourth-
quarter earnings were hit by hefty charges.
Management confirmed its guidance for the fiscal year and said it expects basic earnings per share to increase at
least 15%, assuming revenue remains stable, and orders to exceed sales.
Siemens said it plans to delist its American Depositary Receipts from the New York Stock Exchange "due to change in
the behavior of investors."
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