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Siemens AG (ADR) (SI): Europe Lifts Out of Recession, but Are German Stocks Ready to Rise?

Siemens AG (ADR) (NYSE:SI) has come to rely heavily on Germany’s trade prowess to make up for Europe’s pullback. Revenue picked up by 8% in the Asia-Pacific region last year, and by 12% in the Americas, forcing more of investors’ eyes overseas to judge the company’s performance. Siemens AG (ADR) (NYSE:SI)’s stock has been flat year to date — certainly not what investors were hoping for, considering that even the DAX PERFORMANCE-INDEX (INDEXDB:DAX) has gained in 2013.

Yet, even that segment could be in trouble with the latest worrying news. The Brazilian state governor of Sao Paulo announced that the government will sue Siemens AG (ADR) (NYSE:SI) over allegations of price fixing over public transportation construction and maintenance. Rising transportation costs have already combined with other factors to incite riots and public displays of discontent across Brazil in recent months, and Siemens AG (ADR) (NYSE:SI) can’t afford to lose ground in such a valuable emerging market like this — particularly as Europe struggles to find its footing.

Still, it’s not all bad for Europe’s top companies. Europe’s car market picked up by 4.8% in July, showing there’s one market that’s seeing the successes of a slowly improving European economy. German carmakers have increasingly looked outside the continent for sales, with Volkswagen a major example. China has become Volkswagen’s top market as the company has emerged as the country’s top seller. Meanwhile, European sales have slumped at VW, falling 0.5% year over year in July.

VW’s done very well lately — its stock is up nearly 20% over the past three months — but the company will need more out of the European economy if it wants to turn around things at home.

The article Europe Lifts Out of Recession, but Are German Stocks Ready to Rise? originally appeared on and is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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