Home Business Siemens raises profit guidance again as orders surge
Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Siemens raises profit guidance again as orders surge

by maria gbaf

By John Revill

ZURICH (Reuters) -Siemens became the latest industrial firm to report a post-pandemic surge in demand, prompting the German engineering and technology company on Thursday to raise its profit guidance for the third time this year.

The trains-to-industrial software maker said it was seeing a broad-based increase in demand as customers around the world rebuilt their inventories and vaccination campaigns accelerated the economic recovery.

The Munich company said its orders surged by 47%, driven by double digit growth in factory automation and smart infrastructure.

As a result Siemens hiked its profit guidance for the third time in its 2021 business year, following previous increases in February and May.

It now expects full year sales and profit to be higher than previously thought after beating forecasts for sales, profit and orders during the third quarter.

“Siemens is consistently pursuing its goal of accelerated high-value growth. In the third quarter, once again we delivered – with strong and profitable growth in all businesses,” Chief Executive Roland Busch said in a statement.

Shares in Siemens were indicated up 1.6% in Lang & Schwarz premarket trade.

Higher raw materials prices and supply chain bottlenecks – for example in semi conductor chips – remained a problem, but were being overcome, he said.

Adjusted operating profit at Siemens’ industrial business rose 29% to 2.32 billion euros ($2.75 billion) in the three months to the end of June, beating the 2.09 billion euros in a company-gathered consensus of analyst forecasts.

Revenue rose 24% to 16.09 billion euros, beating forecasts for 15.11 billion euros, while orders surged 47% to 20.49 billion euros, ahead of forecasts for 16.32 billion.

Shareholders’ net income of 1.35 billion euros for the quarter beat forecasts for 948 million euros.

The company said it now expects its full year revenue to rise by 11% to 12%, up from its previous view for an increase of 9% to 11%, boosted by higher sales of its factory automation and smart infrastructure businesses.

Net income for the year to the end of September is now expected to be in the range of 6.1 billion to 6.4 billion euros. The company had previously guided to a range of 5.7 billion to 6.2 billion euros.

Other industrial companies have recently upped their guidance based on the faster than anticipated post-pandemic recovery in many sectors and stronger demand in China and the United States as their economies rebound.

French rival Schneider Electric last month raised its profit and revenue expectations for 2021, while Switzerland’s ABB doubled its revenue expectations and flagged a stronger improvement in profitability.

($1 = 0.8450 euros)

(Reporting by John Revill)

You may also like