German engineering group Siemens stuck to its financial targets for the 2008/2009 business year as strong new orders from power customers helped it weather fallout from the global credit crunch.
Siemens said today that unlike many of its rivals, it had not seen cancellations or delays in its projects. Solid demand from emerging markets had helped it pull in new orders.
Siemens - whose products range from turbines to light bulbs and hearing aids - said it is starting to benefit from a strategy shift away from volatile telecommunication activities towards non-cyclical segments such as healthcare.
Chief Executive Peter Loescher said: "We've done our homework. And here we progressed faster than expected. You have to fix the roof while the sun is shining."
Siemens reiterated that it still saw total sector profit - which measures earnings from its core industry, energy and healthcare divisions - at €8 billion to €8.5 billion for fiscal year 2009, though its outlook excludes the possible impact of restructuring as well as legal and regulatory matters.
Fourth-quarter profit at the core sectors fell 25 per cent to €1.485 billion. It reiterated its 2009 forecast that group income growth from continuing operations would exceed the growth of total sector profit.
Siemens stock was up 0.07 per cent to €40.11 by 10.56am, while the German blue-chip DAX 30 index was down 1.1 per cent.
Analysts were keen to hear whether Siemens would keep its forecast after rivals such as General Electric, ABB and Philips last month made downbeat comments on the bleak business environment.
Siemens, whose share price has fallen around 60 per cent so far this year, trades at 7.2 times estimated 2009 earnings, at a discount to General Electric, ABB and Philips.