Siemens Profit Boosted by New Orders, Energy Projects

German engineering group Siemens posted a stronger-than-expected rise in new orders and revenue thanks to large projects in its industry and energy businesses, sending its shares up 6 percent.

Third-quarter new orders rose 26 percent, adjusted for currency effects, to 23.7 billion euros ($37.29 billion) and sales grew 13 percent to 19.2 billion euros, the company said on Wednesday.

"Those were gigantic numbers," one Frankfurt stock market trader said.

A survey of 14 analysts polled by Reuters had seen on average a 14 percent rise in new orders, while revenues had been expected to grow 5.9 percent.

Shares in Siemens were 5.8 percent higher at 77.45 euros, making them the second-best performer on Germany's blue-chip DAX index.

Siemens regrouped its divisions into three main sectors to benefit from global growth trends -- energy, industry and health care -- at the beginning of this year and began reporting total profit for those sectors in the quarter ended June 30.

Profit for the sectors grew 33 percent to 2.084 billion euros thanks to strong growth in its industry and energy sectors, the latter profiting from the world's booming markets for energy production.

Chief Executive Peter Loescher, the first outsider to take the helm at Siemens, has vowed to make the sprawling conglomerate more efficient.

Net income was down 31 percent at 1.42 billion euros compared to the previous year, when Siemens still had its automotive business VDO and booked a gain from the transfer of its telecoms carrier business into Nokia Siemens Networks.

Siemens reiterated it expected revenue, excluding acquisitions, to expand twice as fast as global economic growth this fiscal year.

The company expects more challenging conditions in the global economy in the fiscal year 2009 but still expects to grow at twice the rate of global GDP.

It forecast total sector profit of 8-8.5 billion euros.

Growth in income from continuing operations is expected to exceed growth in total sector profit, Siemens said.

All forecasts exclude any impact that may arise from the outcome of probes worldwide as prosecutors investigate whether Siemens paid bribes to win contracts, the company said.