Philips and Siemens ,2 of the largest European conglomerates with big Green divisions as well have warned of Dire Macroeconomic problems in Europe.While the stock markets continue to go higher, both companies have cut/ warned profit forecasts on European economic headwinds. Siemens is the largest green company in the world while Philips is one of the biggest LED Lighting Companies . Philips warned that it expects sales to slow to a mid single-digit growth from a year ago due to broader economic problems in Europe. We have taken measures to address our inventory situation in the lighting business, which also had an impact on earnings for the quarter said CEO Frans van Houten.
Siemens the Green Giant
Siemens is the world’s biggest Green Company reporting 28 Billion Euros from its Environmental Portfolio.This diversified Industrials German Conglomerate generates revenues from a diverse number of Green Sectors.While some of its Green Revenues may not be strictly Green as it includes revenues from high efficiency turbines and generators which are used for fossil fuel energy,nevertheless Siemens is the biggest Green Company.Siemens has a dominating presence in Renewable Energy (Leading Position in Offshore Wind),Lighting (OSRAM),Green Building Solutions,Energy Transmission and Distribution.The Company derives 30-35% of its revenues from its Environment Portfolio spread across its 3 Divisions.Siemens has done a remarkable turnaround in the last few years and its recent dividend increase strategy makes it an attractive mega cap stock.The Company is increasing its dividend yield by almost 60% t 2.7 Euros per share or 3% Dividend Yield making the stock an attractive one.Its focus on emerging markets like India and China should yield decent growth even as the developed markets slowdown.It has a massive technological advantages in Energy and Industrial Sectors which are not easy to replicate.
German industrial giant Siemens AG indicated that its full-year earnings targets may be in danger as the fragility of the global economy chokes investment by its customers.Siemens, whose products span gas turbines, streetcars and pregnancy tests, has repeatedly stated it is facing a number of macroeconomic challenges including the European debt crisis,