Thursday, 7 November 2013

Siemens sees cost cuts paying off in higher 2014 profit



Germany's Siemens (SIE.DE) expects to make some headway in its struggle to catch up with more profitable rivals this year, as new Chief Executive Joe Kaeser makes his mark at the engineering group and cost cuts start to bear fruit.

Siemens, Germany's second-biggest company by market value, said on Thursday it expected fiscal 2014 earnings per share to rise by at least 15 percent from last year's 5.08 euros, more than double the 7.2 percent growth rate of fiscal 2013, while organic sales remain flat in challenging markets.


The company has fallen behind rivals such as Switzerland's ABB (ABBN.VX) and U.S.-based General Electric (GE) in terms of profitability in recent years, due to a focus on sales growth as well as poor project management that resulted in a series of one-off charges. Read more.
 

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