Underscoring the volatility of the world economy, energy and automation conglomerate Siemens reported surprise growth in revenue and profit from continuing operations for the third quarter, but cautioned against a slowdown in 2009. Revenue jumped 10% to €19.2 billion, while net income on continuing operations surged 143% to €1.5 billion.
Overall net income for the quarter ended June 30, 2008, declined 31% to €1.4 billion. The company attributed the drop to a one-time gain realized in the year-earlier quarter when it transferred its telecommunications equipment business into the Nokia Siemens joint venture.
The positive revenue and profit figures are in stark contrast to one quarter ago, when the company reported virtually flat sales and a 67% profit plunge. The company also cited strong order growth, especially in the Industry and Energy sectors, where orders grew 26% and 23%, respectively, as businesses and regions sought greater efficiencies and reliable electric supplies, including everything from variable speed drives, to wind turbines, to coal-fired power plants from Siemens. Overall new order growth registered 21%.
“We shifted Siemens into a higher gear in the third quarter, reaching important milestones on our reorganization path,” CEO Peter Löscher said in a statement. “We are becoming faster, more efficient, and more focused.”