Siemens beat expectations for second-quarter profit thanks to a large part to the performance of its power units.

The easing of sanctions on Iran boosted earnings at its Power and Gas unit, helping to offset lower demand for large turbines in Europe, while its Wind Power and Renewables unit swung to a profit as projects were completed and costs fell.

It means group industrial profit jumped 28 per cent to EUR2.12bn, after new orders rose 7 per cent helped by a huge power-plant order from Egypt and an offshore wind farm contract in Britain. Sales rose by a better-than-forecast 5 per cent.