Siemens AG must have been slightly bemused by the reaction to its first half results released on Wednesday. Figures were more or less in line with predictions with net profits down 0.3% to $631.1m on revenue that rose 5.7% to $26.05bn. The German electronics and engineering group is claiming strong growth in the Americas and Asia with sales up 11%, off set by poorer results closer to home in Europe where sales were down by 2%. The full year forecast is for stable profits in the region of $1.17bn. The market responded to this solid performance by forcing shares down $1.34 to $51.80. According to one Reuters trading source, market logic explains the phenomenon thus, The figures were disappointing simply because they were in line with expectations. News for the stragglers within the Siemens group does not look good and the board can’t move fast enough to strip out its under-performers, such as the $900m defense electronics business, on the block since March. The target is for Siemens to divest itself of companies with $3bn worth of non-core revenue inside the next twelve months.
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