The Banking and Strategy Initiative

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European Companies grow inspite of the crisis: Siemens, ETFs

English: Wind turbine in Kirrinsanta. Suomi: K...

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Siemens revised its forecast downward after a forecast of 2011 sales growth of 5% but did not ascribe much of the impact to the Euro zone crisis. Howeverthe global conditions leave a “less margin  for error” in November.

CFO Joe Kaeser made the point that  “No one expects Europe to solve the crisis” and that we have achieved active control on the crisis by December on Reuters Insider.

The Wind Turbines division is  primarily losing pricing power, while Healthcare was known in advance to suffer because of lower imaging demand in the South and the Healthcare US unit performed admirably, esp with performance in the US.

Natural Gas could emerge stronger in the US while renewables as a sector are under global pricing pressure from the resurgent “desire” of corporates to enter the sector. The company banks $12.5 bln or nearly EUR 10 bln , that it is holding with the ECB

Sales for the full year is still a record EUR 96 bln. Its new fiscal year started in October whence November profits stayed flat at EUR 6 bln plus a EUR 1 bln on its exit from Areva JV for Nuclear Power

A WSJ report counts Philip sand GE among competitors focusing on GE’s writedown of business in Europe. US firms may suffer extensively in European prospects as investment bankers scurry to isolate all units including great businesses like Coke, McDonalds,  and Ford for their exposure to Europe. European automakers sales have been down 20% annually on average since 2007.  While Vinci and other great Euro stoxx 50 companies should still be great investments

Here is a Fool’s guide on GE vs Siemens highlighting Siemens 2.7% dividend payout/yield


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