Siemens sales, orders rise on strengthening global economy

FRANKFURT, Germany (AP) - Industrial equipment maker Siemens AG said Wednesday that its net income rose 12 percent to 2.2 billion euros ($2.7 billion) in the last three months of 2017, helped by one-time gains from the sale of shares in its Osram lighting business and from the U.S. corporate tax cut.

The company said results for the quarter - its fiscal first - benefited from the upswing in the global economy. Revenue rose 3 percent to 19.8 billion euros ($24.6 billion) while orders increased 14 percent to 22.5 billion euros. Orders are key to future earnings for the company since projects can take months or years to deliver.

CEO Joe Kaeser said that "the first quarter underlines the strength of our company." He said he expected "the macroeconomic environment to remain positive" going forward, but cited geopolitical risks such as tensions on the Korean peninsula, as well as "diverging definitions of free and fair trade."

The order book was boosted by a 900 million-euro order for commuter trains in Israel including servicing. Revenue and profit in the mobility division climbed as the company filled large orders for trains in Europe in the U.S., including the entry into service of new high-speed trains in Germany.

Siemens products include trains, factory software, medical imaging machines, and power turbines.

The bottom line was boosted by a 437 million euro ($544 million) gain that came from refiguring tax liabilities under the recent U.S. corporate tax cut, which reduced the rate from 35 percent to 21 percent.

Earnings were hit by slumping results at the power and gas unit which saw a 49 percent drop in operating profit, to 238 million euros from 471 million euros in the year-earlier quarter.