Automation and engineering giant Siemens AG rode positive currency translations and tailwinds from a recovering global economy to revenue and order increases in the fourth quarter, the company revealed today.
The German-based maker of diverse products, from automation control systems to trains, said new orders in the three months ended Sept. 30 rose 25% to €23.4 billion, from €18.7 billion in the fourth quarter of 2009. Siemens’ revenue also rose, to €21.2 billion, up 8% from €19.7 billion in the prior-year period.
However, Siemens’ bottom line was punished by impairment charges in its Healthcare sector, which offset higher profits in Siemens’ other two sectors—Energy, home to wind turbines and other products, and Industry, home to its automation and other manufacturing-oriented offerings. As a result, the company reported a loss of €396 million in the fourth quarter. The red ink was less prevalent than for the €1.06 billion loss Siemens reported in the fourth quarter a year earlier.
The fourth quarter helped stem what could have been significant year–over-year drops for Siemens. For fiscal 2010, the company reported revenue of €75.97 billion, down slightly from the prior year of €76.65 billion. Net income spiked 63% to €4.06 billion, from €2.49 billion in fiscal 2009, the company said.