After exceeding sales projections during its second quarter, the German engineering and technology giant Siemens raises full year outlook sales and profit outlook on Wednesday.
From its earlier prediction of an increase of 7% to 10%, the manufacturer of items ranging from trains to industrial software now anticipates comparable revenue growth of 9% to 11% in the 12 months ending in September. In addition, Siemens plans to boost its underlying basic profits per share from the 8.90 to 9.40 euros it predicted in February to a range of 9.60 to 9.90 euros.
Citing Robust Demand
The overall EPS is anticipated to rise to a range of 11.61-11.91 euros thanks to a benefit from the partial reversal of a prior charge. In February, the business upped its full-year projection, citing robust demand and a sizable order backlog that, as of the second quarter, stood at 105 billion euros ($115.58 billion).
After Siemens reported a second-quarter sales increase of 14% to 19.42 billion euros ($21.38 billion), the company boosted its guidance. In a survey put together by the corporation, analysts predicted 18.59 billion euros. In the three months ending in March, industrial profit increased 47% to 2.61 billion euros, falling short of expectations of 2.70 billion euros.
In a statement, Chief Executive Roland Busch stated, “Siemens continues to display remarkable performance, delivering many records, including impressive margin growth and all-time highs in profit for Digital Industries and Smart Infrastructure, as well as another record in order backlog. The performance of Siemens, whose sensors, controls, and software are employed in manufacturing facilities, transportation networks, and construction projects, is seen as a barometer for the state of the industrial economy as a whole.
Siemens raises full year outlook after second-quarter sales beat forecasts;
The core businesses of the group, which are digital industries, smart infrastructure, mobility, and health care, all contributed to the industrial profit. The outcomes highlight the global economy’s recent upward trajectory as it moves past supply chain obstacles that had dogged it up until last year.
On the strength of a solid first quarter, Swiss rival ABB recently increased its full-year outlook for sales and profit, and French train manufacturer Alstom stated last week that market momentum remained quite optimistic. The company’s non-cash gain of 1.59 billion euros from reversing an impairment charge related to its investment in Siemens Energy contributed to boosting Siemens’s net income almost threefold to 3.55 billion.