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Siemens quarterly profit jumps; new chairman named

Siemens AG reported that its net income rose year over year to €2.19 billion in the fiscal first quarter of 2018 from €1.95 billion.

Diluted earnings for the quarter were €2.64 per share, up from €2.37 per share in the year-ago period. Basic EPS was €2.68 in the quarter. The company benefited from a net positive effect of €437 million from the new U.S. tax law.

Th German industrial conglomerate booked an increase in total revenue for the quarter of €19.82 billion from €19.21 billion in the prior-year period. The company saw a 15% year-over-year jump in revenue from Asia and Australia during the quarter on a comparable basis, which excludes currency translation and portfolio effects, while revenues from Germany fell 11% in the period.

Siemens' healthcare business, which is set to be spun off in 2018, saw a year-over-year dip in profit to €541 million in the quarter, compared to €638 million of the previous year.

Total orders for the company grew by 7% during the quarter to €22.48 billion from €19.71 billion in the corresponding quarter of fiscal 2017.

For fiscal year 2018, Siemens expects "modest" growth in revenue, with basic EPS in the range of €7.20 to €7.70, excluding severance charges and effects related to the planned IPO of its health unit.

Meanwhile, Siemens' board approved a dividend of €3.70 per share for fiscal 2017, an increase of 10 pence per share compared to the dividend of fiscal 2016.

Concurrently, Jim Snabe was elected as the chairman of Siemens' supervisory board to succeed Gerhard Cromme whose term expired at the 2018 annual shareholders' meeting. Werner Brandt, Benoît Potier, Dame Shafik and Matthias Zachert joined the supervisory board as members, while Hans Gaul, Gérard Mestrallet and Güler Sabanci left the board.