Siemens unit head sees slower growth in coming year

FRANKFURT, GERMANY - Siemens' head of industry division expects growth to slow in the next fiscal year and said the company would increase capacity with caution in the coming year, according to a media report.

In the second quarter ending in June, new orders in the industry division grew by 10 percent compared with the previous year. The industry division is Siemens' biggest unit by sales.

"We know, we will not see these growth rates again in the next quarters," Heinrich Hiesinger told "Euro am Sonntag".

Currently the situation in regard to new orders was positive despite pessimistic economic news, the paper quoted him as saying.

Engineering group Siemens is due to report third quarter results on July 30.

In a separate interview with German daily Berliner Zeitung, Hiesinger said Siemens could enter the automotive market again if there was demand for some of its components such as electric motors.

But Siemens would not set up an automobile unit of its own again, Hiesinger was quoted as saying.

Last year, Siemens sold its automotive business VDO to tire maker Continental.