Siemens sees return to growth after year of upheaval

Siemens, Europe's biggest industrial group, forecast a return to growth on all levels in 2016 after a year of upheaval in which it axed thousands of jobs at its energy division and sold its last remaining consumer businesses.

The group predicted moderate sales growth, faster growth in orders and a double-digit rise in comparable earnings per share helped by more cost cuts in corporate areas.

“We must reverse the trend of declining volumes seen in past years and increase them again. This turnaround is a key task for us in fiscal 2016, although the slowing of the global economy certainly is no help here,” Chief Executive Joe Kaeser said.

The trains to turbines group also reported strong orders for its fourth quarter ended September 30th, which included the first tranche of a record €8 billion power order from Egypt.

A better than expected profit from its industrial business units helped it hit its full-year margin target, which came in at 10.1 per cent, still well below that of rival General Electric but comparable with Swiss group ABB.

Siemens also announced a new share buyback programme of up to €3 billion over three years and raised its dividend to €3.50 from €3.30 per share for 2015.

The shares were up 3.4 percent at 95.32 euros by 1211 GMT, and were the top gainers in a 0.5 percent-weaker German blue-chip index.

In the fourth quarter, Siemens' industrial profit rose 9 per cent to €2.46 billion, helped by improvements in energy management, wind power and renewables, healthcare and transport. – (Reuters)