Top European engineering group Siemens has raised its earnings forecasts after its industrial business profit jumped in the fiscal first quarter. But as Laura Frykberg report the CEO admits he is worried about development in the U.S. since Donald Trump became President.
Some favourable conditions for Siemens' shareholders. The European engineering group has propelled its earnings forecast for the first financial quarter. Powered by a 60 percent increase in profit in its industrial software division. And a 4 percent rise in sales in China. (SOUNDBITE) (German) SIEMENS CFO, RALF THOMAS, SAYING: "We raise our earnings estimate margin in the industrial business to 11 to 12 percent." But a threat looms on the horizon. The U.S. is Siemens' single biggest market. It makes 21 percent of its revenue and employs more than 50,000 people there. Trump-tainted policy - it says - could force the group to change direction. (SOUNDBITE) (German) SIEMENS CEO, JOE KAESER, SAYING: "It worries us, it worries me personally, and it worries us as a company. If I think of the U.S., and I have been living there for some 5 years, it was always very welcoming. And now we ask ourselves if that's still the case." Siemens says it's prepared for a possibly cooler reception. And is currently in talks with U.S state governors.