Share tips: A global engineering powerhouse

The shares in this global engineering giant have slipped on recent mistakes, says Paul Hill. But buy now - they won't stay down for long.

Siemens is a global powerhouse in electrical engineering and electronics. A major attraction for investors here is its 4.5% yield. Siemens makes everything from robots, power generators and high speed trains to electricity transmission, industrial automation and diagnostic imaging equipment. Revenues are split 68% developed and 32% emerging markets.

Combined the firm boasts a €100bn order book and a research vault containing 53,300 patents. The immediate outlook is uncertain in light of the slowdown in Asia, difficulties in southern Europe and a couple of mistakes last quarter. The latter involved a €278m charge in the power transmission unit due to delays in constructing the infrastructure required to connect offshore wind farms to mainland Germany.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.