Following its estimate beating earnings for its second quarter, the German conglomerate Siemens also increased its profit and sale guidance for the full year which was a second such raise by the company so far in its fiscal year.
Moving into the second half of its fiscal year, the company has “good momentum” which the company seeing growth and production levels reaching levels similar to before the pandemic in its European and Chinese market, said Siemens President and CEO Roland Busch said in a television interview.
Siemens reported adjusted second-quarter EBITDA (earnings before interest, tax, depreciation and amortization) for its industrial businesses of 2.1 billion euros ($2.53 billion), a 31 per cent increase on the same period last year, as the company recovered sharply from its pandemic-induced downturn.
The company also reported its net income for the second quarter at 2.4 billion euros and earnings per share to 2.82 euros. The company also reported a 8 per cent rise in orders on a nominal basis to a value of 15.9 billion euros driven primarily by a significant surge in the firm’s healthcare unit Siemens Healthineers.
“Growth momentum came, in particular, from the automotive industry, machine building, our software business and – from a geographic perspective – from China,” Busch said in a statement Friday.
“Besides the gratifying margin developments at our Industrial Businesses, our successful portfolio management also paid off.”
Following the strong performance in its latest completed quarter, its net income outlook for its fiscal 2021 was raised by Siemens to between 5.7 billion and 6.2 billion euros compared to its previous forecast of between 5 billion and 5.5 billion euros.
It is expected that an acceleration of clients’ transitions towards digitalization, automation and cleaner energy strategies will prove to be beneficial for the company Busch also said in a television interview.
“Our markets are growing faster than the GDP because we are sitting on those product portfolios which are pulling more demand, coming back again to the level of automation but also CO2 reduction, so energy efficiency is a huge topic,” he said.
“Also when you see then stimulus programs kicking in, they really give us tailwind because they are targeted for not investing in what was invested in in the past — they want to do the new things which are all about energy efficiency, using less resources, but also again automation and digitalization is one of the big topics.”
(Adapted from CNBC.com)