From the Wall Street Journal:
German industrial conglomerate Siemens AG, a barometer of the world's manufacturing industry, said Tuesday that although it expects sales and orders to rise in the fiscal third quarter, there are signs of slowing growth.Reuters' colors it a bit rosier but this is a serious economic 'tell':
"The tailwind from the economic recovery is likely over. Now, increased efforts are required for continued growth," Siemens Chief Financial Officer Joe Kaeser told analysts at an event in Shanghai.
Siemens has already said several times in recent months that growth will slow in the second half of the 2011 fiscal year, which ends in September, as the comparison base gets tougher, even though Chief Executive Peter Loescher had stated in January that the global economy was recovering faster than anticipated.
Siemens, which competes with General Electric Co. and Royal Philips Electronics NV, makes a wide range of products from trains to wind turbines and hearing aids and has been benefiting from the economic rebound in recent quarters.
Investors turned negative on Siemens Tuesday, sending its shares down 3.5% at €89.54 during European afternoon trade....MORE
Siemens cautions on slower growth after buoyant Q3
* Siemens says Q3 new orders up significantly year on year
* Q3 revenue seen flat on previous quarter, up year on year
* Firm must increase efforts to spur growth -finance director
* Shares down 4.1 pct vs 0.1 pct decline on Europe index
(Adds comment, background)
By Marilyn Gerlach
FRANKFURT, June 28 (Reuters) - Europe's biggest engineering conglomerate Siemens (SIEGn.DE), a bellwether for the German economy, saw its shares fall on Tuesday after it warned of growth easing amid a slowdown in economic recovery.
Munich-based Siemens, which makes everything from hearing aids and light bulbs to fast trains and power plants, said growth was driven by its energy and industry sectors.
"Our growth expectations have come along in the third quarter," Finance Director Joe Kaeser said at an investor event in Shanghai, China.
Siemens said there were the "first signs of easing growth" in the second half of its fiscal year to September due to tougher comparisons with last year, when demand rose steeply as factories emerged from the financial crisis.
"The tailwind from the economic recovery is likely over. Now, increased efforts are required for continued growth," Kaeser added.
By 11.15 GMT, the shares had declined 4.1 percent while the broader European STOXX index of industrial goods was down 0.1 percent.
Analysts said the shares have fallen apparently because of comments indicating the pace of growth for its fiscal year would no longer be as fast as last year.
"Things will not move up quickly and will stabilise at these levels," according to one analyst who declined to be identified....MORE
The gaps at both the 120 and 110 areas could be a target in an overall market downturn, there will be another chance to own this class act: