Siemens chief rules out recession after reporting profit rise

Nov 10, 2011, 12:42 GMT

Berlin - German industrial giant Siemens AG ruled out the risk of recession on Thursday, after the group reported a rise in profits for the fiscal year ended September 31.

'I don't see a recession scenario,' said chief executive Peter Loescher.

'We're prepared for moderate revenue growth in 2012, and intend in the medium term to increase revenue to above 100 billion (dollars).'

The Munich-based group said new orders in both the fourth quarter and for the year were strongest in drive technologies, which jumped 30 per cent in the quarter and 32 per cent for the year.

Shares opened down 3 per cent on the earnings news, but stabilized in mid-day trading down just 0.01 per cent to 72.39 euros a share.

While revenues rose 5 per cent in the fiscal fourth quarter, the company reported a jump in profit on the year attributed to a rise in demand for heavy machinery.

Total sector profit climbed 36 per cent year-over-year to 9.09 billion euros (12.28 billion dollars). Revenue for the fiscal year climbed 7 per cent, to 73.51 billion euros. Income from continuing operations reached 7.01 billion euros. Quarterly revenue touched 20.4 billion euros.

The company proposed a dividend of 3 euros per share compared to 2.70 euros per share in fiscal 2010.