Germany Daybook: Siemens Says Profit to Rise More Than Expected
Siemens (SIE GR), Europe’s largest engineering company, said profit and sales this year will rise more than it previously anticipated as customers buy more industrial equipment and a unit overhaul starts to pay off.
Net income from continued operations will rise to at least 7.5 billion euros ($11.1 billion) in the fiscal year ending Sept. 30, from a comparable 4.3 billion euros last year, Siemens said today in a statement.
EQUITIES: *Fresenius Medical Care (FME GR), the world’s biggest provider of kidney dialysis, said it expects to be more profitable this year as the U.S. Medicare program eliminates fees for blood- cleansing facilities in connection with reimbursement changes. *Linde (LIN GR) said first-quarter profit rose 43 percent on demand from Asia and the health-care industry. *Henkel (HEN3 GR) said first-quarter profit rose 10 percent as industrial customers bought more adhesives. *Wincor Nixdorf (WIN GR) said second-quarter net income fell 8 percent to 24 million euros. *Bayer (BAYN GR) Chief Executive Officer Marijn Dekkers said he is open to a “merger of equals” for the company’s healthcare unit. *Drillisch (DRI GR) said it increased its stake in Internet services provider Freenet AG to 20.2 percent from 15.2 percent by buying shares held in the company by Bank of America Corp. *Wacker Chemie (WCH GR) said first-quarter net rose 58.6 percent to 168 million euros.
GOVERNMENT: *Germany’s 16 states back the efforts of federal lawmakers to secure influence over the future financial arrangements of the European Stability Mechanism, Handelsblatt reported. The states will have a seat in the governing council of the bail-out fund and will reject any future ESM aid request unless the lower house’s budget rights are anchored in national ESM legislation, the newspaper said in a report. *The European Union has set a June deadline for Germany to clarify its plans for restructuring state-controlled lender WestLB, Financial Times Deutschland reported, citing the European Commission.
WHAT TO WATCH: *Markit releases final Germany services PMI survey for April at 9:55a.m. *Markit releases final euro-zone services and composite PMI survey results for April at 10 a.m. *Eurostat releases euro-zone retail sales data for March at 11 a.m.
MARKETS: *The DAX Index fell 0.4% to 7,500.70. *The Stoxx Europe 600 Index fell 0.5 percent to 282.43 *MSCI Asia-Pacific Index fell 1% to 138.53 as of 8:23 a.m. Frankfurt time. *German 10-year bond yield at 3.260% *Euro -- U.S. $1.481.
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