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Siemens triples quarterly profit

2021-05-08T20:58:45.231Z

The business of the industrial group Siemens is going well even after Joe Kaeser's replacement. Thanks to good figures, the Dax company has raised its annual forecast significantly - but problems threaten.



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Siemens boss Roland Busch: Scarce components and price increases in some areas

Photo: POOL New / REUTERS

Strong sales in the auto industry and mechanical engineering - as well as strong demand in China - fueled the business of the industrial group Siemens.

Under its new boss Roland Busch, the company reports a significant jump in profits from 0.7 billion to 2.4 billion euros in the second fiscal quarter.

Thanks to this upswing after the Corona slump, Siemens is now increasing its forecast for the second time.

However, the sale of the gear manufacturer Flender also contributed to the jump in profit from January to March.

Siemens puts the positive effect at around 900 million euros before taxes.

That was more than expected, said CEO Busch, who replaced Joe Kaeser at the top a few weeks ago.

But even without this effect, there would have been a very clear plus.

"The industry continues to recover," said Busch, speaking of an "outstanding quarter".

And he also expects a positive trend for his company in the second half of the year.

At the end of the financial year, according to the forecast that is now valid, a profit of 5.7 to 6.2 billion euros should be, around 700 million more than the last target.

Sales should also grow faster.

However, the new forecast does not yet take into account burdens from the Varian takeover by the subsidiary Siemens Healthineers.

These cannot be quantified precisely enough, said CFO Ralf P. Thomas.

Siemens expects around 300 to 500 million euros after taxes.

Siemens wants to save on business trips in the long term

Revenue also increased significantly in the first quarter, increasing by six percent to 14.7 billion euros.

Siemens also benefited from lower travel and marketing costs during the corona pandemic.

But this effect will decrease, it said.

At least within the group, Siemens wants to continue to save on travel after Corona.

With customers, however, you will return to personal contact, said CFO Thomas.

CEO Busch is thus "despite ongoing uncertainties" on course for a strong first year.

The uncertainties include problems with the supply of materials and parts, and many companies around the world are currently even stuttering the supply chain.

So far, Siemens sees itself only slightly affected.

They are working "hard to further reduce the risks that result from the shortage of electronic components and price increases in some areas," said Busch.

Longer delivery times feared due to lack of material

The Siemens boss currently sees a tense situation in the areas of steel, plastics and freight capacities, among other things.

"Therefore, in the coming months, there could be restrictions in production and longer delivery times in individual cases." But he is confident that the supply chains will not break down.

Busch, on the other hand, expects positive effects from the global government growth programs against the consequences of the corona crisis.

However, these would probably no longer make themselves felt in the current financial year, which ends in September.

apr / dpa

Source: spiegel

All business articles on 2021-05-08

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