FRANKFURT, Germany (AP) — German industrial equipment maker Siemens AG said Thursday it is raising its profit forecast after earnings for its core businesses jumped 20 percent to 2.2 billion euros ($2.4 billion) during the most recent quarter.
The company said earnings per share for the current business year would rise to 6.50-6.70 euros, up from the previous forecast for 6.00-6.40 euros.
The company said new orders — a key indicator of future profit — rose 6 percent to 21.1 billion euros.
CEO Joe Kaeser said the company is making progress in streamlining its multiple businesses and increasing its profit margin, which rose to 10.5 percent from 9.8 percent in the same quarter a year earlier. "We have delivered on what we promised," he said during a conference call with journalists.
Kaeser said the company is coping with uncertainty from the British vote to leave the European Union and a failed coup in Turkey. It is also dealing with low prices for energy, which affect its customers in the oil industry.
Net income fell slightly to 1.372 billion euros in the April-June quarter — the company's fiscal third quarter — from 1.376 billion euros in the same period a year earlier due to financial factors including tax benefits for business the company has discontinued and interest expenses from increased debt issuance. That profit figure beat analyst estimates for 1.161 billion euros as compiled by financial information provider FactSet.
The Munich-based company makes trains, wind and gas power generation equipment and medical imaging devices.
