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.
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 stabilize at these levels,” according to one analyst.
The widely watched Ifo index on German business sentiment rose unexpectedly in June, showing the economy outpacing its euro zone peers, but firms were at their least upbeat about the future in more than a year, signaling slower growth in coming months.
Siemens competes with General Electric and Philips.
The latter’s shares slumped last week after it warned of sharply lower profits at its lighting division and toasters-to-shavers consumer business, due to weak demand in Europe.
Siemens said new orders in the quarter to end-June were expected to rise significantly from the year-earlier period, while adjusted net profit from continuing operations was seen slightly above the prior-year level.
It said sales would likely exceed the prior-year figure of 17.4 billion euros ($24.7 billion) and “stabilize” at the level of about 17.7 billion reached in the second quarter.
Thomson Reuters’ I/B/E/S has estimated Siemens’ third-quarter revenue at 18.9 billion euros and all-in net income at 1.54 billion.
Siemens trades at 11.6 times its 12 months estimated earnings, a discount to Dutch rival Philips’ 12.5 and ABB’s 14.7.
Siemens will release third-quarter results on July 28.
