Siemens A.G. (NYSE: SI) released strong earnings for its fiscal fourth quarter and outlined plans to lower costs by six billion euros by 2014. At its current pace and with strategic plans on expenses, Siemens means to make itself the most well-run and well-structured conglomerate in the world. That is something its major rival, General Electric Co. (NYSE: GE), cannot claim based on its past several years of results. Siemens revenue for the fourth quarter rose 7% year-over-year to €21.703 billion, and orders rose 2% to €21.495 billion. Siemens did particularly well in two sectors that are GE strongholds:
Energy and Healthcare recorded higher fourth-quarter orders year-over-year, including strong demand at Fossil Power Generation and Diagnostics. Infrastructure & Cities saw orders fall from the prior-year level, which included a higher volume from large orders.
And Siemens results do not appear to have been hurt much by the global slowdown as it posted better results based on its most important measurements:
All Sectors reported revenue growth in the fourth quarter with tailwinds from currency translation effects. Energy and Healthcare posted double-digit increases on broad-based growth. On a geographic basis, revenue rose in all three regions, led by 14% growth in the Americas. Emerging markets on a global basis grew 3% year-over-year, and accounted for €7.416 billion, or 34%, of total revenue for the quarter.
Who says a huge company cannot do well during a recession?
Douglas A. McIntyre