The financial forecast is looking up for engineering and automation giant Siemens AG. The German company issued a statement this week citing an uptick in new orders that it said will favorably influence fourth quarter revenue.
Like its competitors’, Siemens’ order pipeline had been on a downward slide in 2009, falling by a total of 16% last year. But the company appears to be on the rebound, buoyed by a recovery in manufacturing and heightened activity in the renewable energy market. To that end, for its fiscal fourth quarter ending Sept. 30, Siemens said it expects new orders and revenue to increase both sequentially and year over year within its Industry, Energy, and Healthcare sectors.
“In all probability, our operating results for the fourth quarter will be very satisfactory,” said Siemens CFO Joe Kaeser in a statement. “Particularly in new orders, we’re seeing a further upturn in business activity.” And the operating profit that Siemens experienced in the first three quarters of fiscal 2010 will probably extend into the fourth quarter as well, he said.
In particular, the Industry sector, made up of six business units, including Industry Automation, Drive Technologies, Lighting (Osram), Industry Solutions, Building Technologies, and Mobility, is benefiting from improvement in its short-cycle business (such as LED lighting), the company said. In addition, Siemens said, the Industry business line is experiencing the first positive signs in its long-cycle businesses that relate to manufacturing projects.