BERLIN (dpa-AFX) - German conglomerate Siemens AG (SI) Thursday reported higher third-quarter profit, benefited by total sectors profit. Siemens while warning on challenging Energy Sector, confirmed its guidance for full-year 2014.
Joe Kaeser, president and chief executive officer of the company said, 'While we made good progress in most areas, the Energy Sector poses a continued challenge in the quarters to come.'
Profit from Energy for the recent quarter decreased to 405 million euros, on an 8 percent decline in revenue.
For the third quarter, the company's net income climbed to 1.40 billion euros or 1.61 euros per share from 1.10 billion euros or 1.26 euros per share in the previous year.
Income from continuing operations climbed 36 percent to 1.37 billion euros, or about $1.83 billion. The increase was mainly due to total sectors profit, the firm said.
Total sectors profit grew 37 percent to 1.74 billion euros, helped by substantial profit improvements in Infrastructure & Cities and Industry.
However, quarterly revenues declined 4 percent to 17.92 billion euros from 18.61 billion euros in the preceding year. On an organic basis, excluding currency translation and portfolio effects, revenues edged up 1 percent.
Orders were 3 below the prior-year period. Book-to-bill ratio was 1.08 for the quarter, and Siemens' order backlog was 101 billion euros.
For fiscal 2014, the firm still expects basic earnings per share to grow by at least 15 percent from 5.08 euros in fiscal 2013 and organic revenue to be flat. Orders are expected to exceed revenue, for a book-to-bill ratio above 1.
On Frankfurt's Xetra, Siemens shares are currently trading at 93.77 euros, up 1.15 percent.
On the NYSE, the shares closed Wednesday's trading at $132.66.
Copyright RTT News/dpa-AFX