SIEGY Siemens AG (PK)

By Friedrich Geiger 

MUNICH -- German engineering company Siemens SE on Tuesday raised its guidance for the fiscal year after profit increased in the October-to-December quarter.

Siemens now sees undiluted earnings per share at EUR7.20 ($7.78) to EUR7.70 for the fiscal year ending in September, up from an earlier forecast of EUR6.80 to EUR7.20. Because of a strong start to the fiscal year, the company raised its prediction for the profit margin of its industrial business to between 11.0% and 12.0%, up from an earlier forecast of 10.5% to 11.5%.

In the October-to-December quarter, net profit was EUR1.91 billion, up from EUR1.53 billion a year earlier as revenue increased 1.2% to EUR19.12 billion. Income from continuing operations of EUR1.93 billion exceeded analysts' EUR1.40 billion consensus estimate. Order intake, however, declined 14% to EUR19.55 billion because of a lower volume of large orders.

Profit rose strongly at several business units. The Digital Factory division was helped by a gain related to the contribution of its eCar business to a joint venture. The Power and Gas division benefited from improved project execution and lower severance charges.

Profit of Siemens' centrally managed portfolio activities increased to EUR409 million from EUR16 million, helped by a higher positive result related to an asset retirement obligation.

Chief Executive Joe Kaeser said after the results "we will...even further strengthen our innovation power and customer proximity."

The results appeared to further demonstrate Mr. Kaeser's extensive revamp of the company could deliver consistent profitability, buoying him ahead of addressing investors at the company's annual shareholder meeting on Wednesday.

Since taking over the top job in a board room coup in 2013, Mr. Kaeser has overseen a comprehensive restructuring that has included around 13,000 job cuts, divestitures, a simplification of the company's organizational structure and a beefing up of its traditional and renewable energy businesses.

Siemens plans to provide additional information at a press conference on Wednesday.

Christopher Alessi contributed to this article.

Write to Friedrich Geiger at friedrich.geiger@wsj.com

(END) Dow Jones Newswires

January 31, 2017 16:36 ET (21:36 GMT)

Copyright (c) 2017 Dow Jones & Company, Inc.