Siemens headquarters: The Munich-based technology group has raised its outlook after a strong second quarter. © Sven Hoppe/dpa
Things are currently running smoothly at Siemens. In the past quarter, the Munich-based group almost tripled its net result - and raised its forecasts.
Munich – Munich-based technology giant Siemens continues to perform excellently. In the second quarter of its fiscal year, the Group almost tripled its profit to EUR 3.55 billion. In its two core divisions of Smart Infrastructure (building technology and networks) and Digital Industries (industrial automation), the Dax heavyweight made record profits. Incoming orders are also picking up strongly, as Siemens announced on Wednesday, and are now at a record level.
In view of this development, the company is now raising the bar again. According to this, the Munich-based company is now aiming for an increase in sales of nine to eleven (previously: seven to ten) percent in the current financial year (as of the end of September), and incoming orders are expected to be even higher. Originally, Siemens had targeted revenue growth of six to nine percent for the current fiscal year.
Siemens: Billions in income from write-up on Siemens Energy
Siemens CEO Roland Busch spoke of an "outstanding achievement". Earnings per share are expected to increase to between EUR 9.60 and EUR 9.90 (previously EUR 8.90 to EUR 9.40) in the ongoing business. In addition, there are €2.01 per share - a total of €1.6 billion - from the share price recovery of the former energy technology subsidiary Siemens Energy, in which Siemens still holds a 32 percent stake. Siemens had to book a heavy write-down after a fall in the share price of Siemens Energy. After the recent price increase, however, the group has now made a write-up and realized a tax-free profit of 2.6 billion euros.
Group sales soared by 15 percent on a comparable basis to 19.4 billion euros, while order intake rose by 15 percent to 23.6 billion euros after a dip in the first quarter.
Siemens: Digital Industries with substantial increase in revenue
Half of the operating profit of 1.3 billion euros was attributable to Digital Industries, whose sales soared by 23 percent. Incoming orders weakened with a minus of ten percent. In the Smart Infrastructure building technology division, sales rose by 21 percent, and earnings by as much as 75 percent to a record level of 779 million euros. A billion-euro order for locomotives from India helped the Mobility train division to achieve a record order intake, with sales jumping by a third. The three core divisions thus made up for the weakness of the medical technology subsidiary Siemens Healthineers, which is undergoing restructuring in several places.
Siemens raised its revenue expectations for all three core divisions. Higher results are also expected for Digital Industries and Smart Infrastructure. The flagship segment remains the automation division, which is expected to achieve a margin of 17.20 to 12.15 (previously 22 to 5) percent this fiscal year with sales growth of 23 to 5 percent (previously 20 to 22 percent). (RTR/UTZ)
