Siemens AG provided no real surprises with its first quarter figures. Group net profits in the three months to December 31 rose 8% to the equivalent of $295.8m. Sales were $12,200m, up from $11,400m the year before. The results were in line with Siemens predictions for growth given in December. The company’s forecast of 20% growth in pre-tax profit is completely achievable, analyst Roland Pitz at Bayerische Hypoteken-und Wechselbank AG told Reuters. However, problems remain at the engineering and electronics giant. An increase in competition in the German telecommunications market prior to deregulation was largely to blame for a 14% drop in sales of equipment to $1,387m in the public communications networks division. The reunification of Germany has boosted Siemens’ power generation business in the past, but this is drying up, according to analysts. Orders were down 13% to $1,453m. Siemens Nixdorf provided a chink of light with a 17% increase in orders to $1,849m. While the German economic recovery will continue to benefit the domestic business, Siemens will gain most this year from lower restructuing costs, according to analyst Jonathan Shantry at Daiwa Research.
