Siemens to see growth in Q1 profit, new orders

German economic bellwether Siemens looks set to improve the tone of its full year guidance on Tuesday on the back of higher first-quarter earnings, thanks to a broadening footprint in emerging markets.

Analysts said Europe's biggest engineering conglomerate was expected to keep its outlook for the fiscal year, which started on October 1, 2010, and would provide details on first-quarter order intake -- an indicator of future sales.

Siemens has forecast 25% to 35% growth in profit from continuing operations for the year to September 30, 2011, "clear growth" in order intake and "moderate" organic revenue growth.

"We do not expect a change to FY guidance at this stage ... the tone of guidance may improve," said Berenberg Bank analyst William Mackie.

Siemens, steelmaker ThyssenKrupp and other local manufacturers have benefited from emerging economies' appetite for Germany's luxury cars, high-end engineering and industrial equipment.

Underlining the rebound in the euro zone's biggest economy, the Ifo economic institute said on Friday that German business morale in January had risen to a 20 year high, as trade with China and other emerging countries picked up.

Shares in the Munich-based company, whose products include express trains, wind turbines, hearing aids and lightbulbs, have shot up 43% in the past year, while US rival General Electric has gained 23%.

The STOXX 600 Industrial Goods Service Index rose 32% during that period.

GE on Friday reported better-than-expected earnings for the quarter, on the back of strong emerging markets demand, while Philips, whose X-rays and CT scans compete with Siemens, saw its shares tumble on Monday after posting sub-par fourth-quarter profit.

Siemens gave a trading update on January 10, saying its bread-and-butter Industry Sector -- which generated nearly half of group sales last year -- and Energy Sector, which contributed nearly half of group profits, were the main drivers of quarterly growth. The Healthcare Sector was weaker.