Siemens raises profitability targets

Siemens delivered stronger quarterly results than expected today and announced a €10 billion share buyback programme.

Siemens delivered stronger quarterly results than expected today and announced a €10 billion share buyback programme.

Siemens more than doubled quarterly operating profit to €1.990 billion from €749 million a year ago. New orders rose 21 per cent to €21.328 billion, while sales rose 9 per cent to €20.201 billion.

The company said it would raise its dividend for 2006/07 to €1.60 per share from €1.45 per share a year ago.

The company said it had benefited from favourable macroeconomic conditions despite a slowdown in US growth. Siemens shares rose as much as 5.5 per cent against weak European markets today.

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Next year, Siemens said, sales and orders should increase at twice the rate of global GDP growth while operating profit should grow at least twice as fast as the top line.