Citing “positive business development” and strong market demand, Siemens Energy said it now expects sales to grow by 14-16%, up from 11-13% previously, while its profit margin before special items is now forecast at 10-12%, up from 9-11%.
Sign up here.
Frankfurt-listed shares in Siemens Energy rose following the results to trade 6.6% higher at 1640 GMT.
The rise has been fuelled by strong global demand for gas turbines and power grid equipment, as governments around the world rely on fossil fuel-based round-the-clock supply, and modernise ageing energy networks.
Siemens Energy also released preliminary second-quarter results ahead of their official publication on May 12, showing sales increased 8.9% to 10.3 billion euros ($12.1 billion), while profit before special items rose 28% to 1.16 billion.
Its struggling wind division Siemens Gamesa – closely watched by investors to see whether it can break even this year – narrowed its quarterly operating loss to 44 million euros, compared with a 249 million loss in the same period last year.
($1 = 0.8544 euros)
Reporting by Christoph Steitz; Editing by Kirsten Donovan and Keith Weir
Our Standards: The Thomson Reuters Trust Principles.
