Siemens profits up despite revenue fall

Surprise profits have prompted giant to review 2010 outlook

Siemens saw profits rise

Siemens posted an 11 per cent increase in operating profits for the first quarter of 2010, as a result of cutting sales and administrative costs and maintaining a " favourable revenue mix," according to the company.

Net income for the quarter came in at €1.53bn, a rise of 24 per cent on the €1.23bn recorded for the year-ago period.

But overall revenues fell by 12 per cent, from €19.6bn to €17.4bn.

"Earnings for the first quarter provide a gratifying snapshot of our current situation," said Peter Löscher, Siemens chief executive.

"We will continue to tackle all challenges decisively and in a responsible manner. Only such an approach can ensure Siemens’ long-term success."

But the firm was cautious in its outlook for the coming year.

"Siemens anticipates that conditions in the manufacturing sector and world financial markets will remain challenging in fiscal 2010," it said.

"Following a double-digit decline in orders in fiscal 2009, we expect only a mid-single-digit percentage decline in revenue in fiscal 2010."

However, the company has said said it will review its 2010 outlook after this relatively strong start to the year.

Analysts have said the company's original full-year forecasts are too cautious and based on assumptions of a decline in product prices.