German industrial group Siemens has raised its full-year earnings forecast for the second time this year after large energy projects helped to take its third-quarter results above expectations and sent its shares to a 12-month high. Hayley Platt reports
Large energy projects helped Siemens deliver better-than-expected third quarter profits. It raised its full-year earnings for the second time this year - sending shares to a 12-month high. But the German industrial group still has plenty of challenges. (SOUNDBITE) (English) SIEMENS CHIEF EXECUTIVE, JOE KAESER, SAYING: "The conditions in the market place are not exactly giving us a lot of tailwind so we do need to manage through the opportunities which we believe there are plenty of. Obviously the oil and gas sector is suffering a lot from a deteriorating pricing and over supply." But orders were up 9 percent, as were sales by 7 percent and industrial profit by 20 percent. Its main competitors - ABB and General Electrics - both saw a fall in orders. China and the US were strong and Brexit risks aren't a big worry - even though Siemens employs 14,000 people in 13 UK factories. (SOUNDBITE) (English) SIEMENS CEO, JOE KAESER, SAYING: "We are very active not just in employing people and creating jobs, we also do invest in the country. And that might help us a little bit and it might be one of the reasons why we are a little bit more at ease as many other companies which just export to the UK and have to deal with the currency fluctuation." But there are still some currency risks. SOUNDBITE (English) SENIOR FX STRATEGIST, RABOBANK, JANE FOLEY, SAYING: "If you look at the exchange rate as a starting point what we've seen in the first half of the year is euro dollar rising and that may have some impact on their orders going forward." Siemens has been cutting costs and plans to continue doing so. It hopes to save 1 billion euros over the year.