Siemens Q2 Profit Hits $1.97B, Up 48 Percent

BERLIN (AP) -- German industrial conglomerate Siemens AG on Thursday said its net profit in the second quarter rose 48 percent, as cost cuts offset a decline in revenue, and lifted its outlook for 2010.

The company, based in Munich, that makes everything from trams to turbines said net profit rose to euro1.49 billion ($1.97 billion) in the January-March period compared with euro1.01 billion a year earlier.

Revenues, however, slipped 4 percent to euro18.2 billion from euro18.9 billion a year earlier, a dip Siemens blamed on single digit declines in its energy and industry sectors amid fewer orders.

Still, despite the slight slip, Siemens said the units, including health care, were set to surpass 2009's operating earnings of euro7.5 billion, above its initial guidance of between euro6 billion and euro6.5 billion.

Chief Executive Peter Loescher said the quarterly results were further evidence of the company's ongoing efforts to be more competitive, particularly in the economic uncertainty and shaky recovery of the global economy.

"Siemens has again demonstrated its profitability impressively," he said in a statement. "In this regard we are profiting in particular from measures we initiated early on to strengthen our competitiveness."

He added that the company has stressed innovation to further assert "our strength in the market."

Investors appeared to agree, sending Siemens shares up nearly 1 percent in morning trading in Frankfurt to euro72.63.

The industry sector, which includes automation and building technologies, saw its revenues slip 4 percent to euro8.29 billion while the energy sector's revenues were down 3 percent to euro6.18 billion. The health care sector's revenues were down 1 percent to euro2.96 billion.

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