Siemens raises full-year outlook after second-quarter sales beats forecasts

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A Siemens logo in Germany. The industrial giant says that a newly commissioned green hydrogen plant in the country will use wind and solar power from the Wunsiedel Energy Park.

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Siemens raised its full year sales and profit guidance on Wednesday after the German engineering and technology group beat sales forecasts during its second quarter.

The maker of products ranging from trains and industrial software now expects comparable revenue growth of 9% to 11% in the 12 months to the end of September, up from its previous outlook for an increase of 7% to 10%.

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Siemens also expects to increase its underlying basic earnings per share to a range of 9.60 euros to 9.90 euros, up from the 8.90 euros to 9.40 euros it said it expected in February.

With a gain from the partial reversal of a previous charge, the overall EPS is expected to increase to a range of 11.61-11.91 euros.

The company had already raised its full-year outlook in February, citing strong demand and its massive order backlog, which increased to 105 billion euros ($115.58 billion) in the second quarter.

The raised guidance came after Siemens reported its second quarter revenue jumped by 14% to 19.42 billion euros ($21.38 billion). Analysts in a company-compiled poll had expected 18.59 billion euros.

Industrial profit in the three months to the end of March rose 47% to 2.61 billion euros, missing forecasts for 2.70 billion euros.

“Siemens continues its outstanding performance, delivering several records, including impressive margin increases and all-time highs in profit for Digital Industries and Smart Infrastructure, as well as another record in order backlog,” said Chief Executive Roland Busch in a statement.

The results of Siemens, whose sensors, controllers and software are used in factories, transport systems and buildings, are seen as indicators for the health of the broader industrial economy.

The group’s industrial profit includes gains made by its digital industries, smart infrastructure, mobility and health care businesses, which form the core of its operations.

The results underline the recent upward trend in global industry as it overcomes supply chain bottlenecks that have plagued it until last year.

Swiss peer ABB recently raised its full-year guidance for sales and profit on the back of a strong first quarter, while French train maker Alstom last week said market momentum remained very positive.

Siemens’s net income almost tripled to 3.55 billion, helped by the company booking a non cash gain of 1.59 billion euros from reversing an impairment charge related to its investment in Siemens Energy.

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