MUNICH-(Dow Jones)- Siemens AG (SI) Thursday posted a 12% rise in third-quarter net profit and increased sales and order intake for the first time in seven quarters, marking a return to growth after the demand slump brought about by the recession.

Net profit for the quarter ended June 30 was EUR1.41 billion compared with EUR1.26 billion a year earlier.

Closely-watched operating profit at its core businesses of energy, industry and healthcare was up 40% to an record level of EUR2.33 billion on cost cutting after the company axed 12,600 jobs as part of plans to save EUR2 billion in selling, general and administrative expenses.

Sales in its core business were up 4% to EUR19.17 billion and order intake improved by 22% to EUR20.87 billion.

"Siemens gained further momentum in the third quarter. At the same time, {operating profit} reached its highest point ever, and will clearly exceed the level of the year prior," said Chief Executive Peter Loescher in a statement.

Siemens is a barometer for the world's manufacturing industry, with 402,000 employees in 190 countries and products that span hospital equipment, transportation, factory automation gear and power turbines. In common with rivals General Electric Co. (GE) and Netherlands-based Philips Electronics NV (PHIA.AE), it has suffered from the demand slump brought about by the downturn.

Siemens' results beat expectations for an operating profit in its core business of EUR2.09 billion on sales of EUR18.58 billion, according to a Dow Jones Newswires poll of 16 analysts.

Siemens reiterated that it expects full year operating profit in its main sectors to exceed fiscal 2009's level of EUR7.5 billion. Siemens fiscal year ends Sept. 30

Siemens shares closed Wednesday at EUR76.15.

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