German industrial giant Siemens reported a strong set of quarterly results on Thursday as the company took advantage of the "global economic upturn".
While its financial first quarter profits were hit by a weak performance from its power and gas business, the company's group net income rose 12% to €2.2bn.
New orders rose 14% to €22.5bn, beating market forecasts of €20.81bn and total revenue climbed 3% to €19.8bn.
Power and gas struggles
But thanks to the power and gas business, earnings at Siemens' industrial unit were down 14% to €2.21bn. Although this beat forecasts of €2.19bn, the company was cautious over the future of the unit.
"The declining market for fossil power generation is not a temporary slump," said chief executive Joe Kaeser.
"Instead it reveals the expected dramatic development that we’ll only be able to address and we must address by taking strategic measures."
Indeed, the company is in the process of a strategic overhaul that has included the divestment of several assets.
Last year Siemens spun off its wind turbine unit and is in the process of a similar action with its trains division. The company also plans to list its medial and diagnostics business later this year.
The company’s shares were up 0.61% at €121.92 on the Frankfurt Stock Exchange in mid morning trade.