German engineering conglomerate Siemens raised its full-year forecast and posted a better-than-expected 40 percent rise in third-quarter operating profit, thanks to cost cuts and a weaker euro that helped boost exports.Siemens' upbeat view mirrored recent strong results from some of its peers, such as ABB and General Electric , who said a strong economic recovery was underway fuelled by sales in emerging markets.Siemens said on Thursday sales in the three-month period to the end of June grew four percent year-on-year to 19.2 billion euros, while new orders were up 22 percent at 20.9 billion euros. Both figures were also higher than in the previous quarter.Europe's biggest engineering group said a recovery in its bread-and-butter industry business helped boost operating profit to 2.33 billion euros from 1.66 billion euros last year.A Reuters poll of analysts had pencilled in third-quarter total sectors profit at 2.1 billion euros, new orders at 18.5 billion euros and sales at 18.6 billion euros."Good results in my view. The order intake and total sector profit are above my expectations," said analyst Ingo-Martin Schachel of Commerzbank.Siemens on Thursday slightly upgraded its forecast for the full fiscal year, which ends in September, saying its operating profit was expected to be "clearly" higher than the previous year's 7.5 billion euros.In April it said its operating profit would be higher than last year.Swiss engineering group ABB last week posted forecast-beating quarterly profit and said it was more confident about demand after emerging market growth fuelled sales of automated equipment.And General Electric, which said it would resume buying its shares, reported a better-than-expected 16 percent rise in second-quarter profits.VDMA German engineering association last week raised its output forecast for this year, saying Asian export growth was helping the sector recover from the economic crisis faster than expected.Siemens trades at 12.3 times its estimated 12-months earnings, a discount to GE's 13.2 and ABB's 15.9 but a premium to Alstom's 10.6, according to StarMine, which weights analysts' based on their track record.Siemens shares, which rose 1.27 percent in early trade, edged 0.28 percent lower to 75.94 euros by 0746 GMT, while the Frankfurt blue chip index was up 0.15 percent.(Editing by Sharon Lindores)(For more business news on Reuters India click http://in.reuters.com)News posted by www.newsinfoline.com
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