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Siemens became the last industrial company to report a post-pandemic surge in demand, prompting the German engineering and technology company on Thursday to raise its earnings forecast for the third time.
time this year.
The maker of trains to industrial software said it now expects full-year sales and profits to be higher than previously thought, after beating forecasts for sales, profit and orders in the third quarter.
Siemens said adjusted operating profit from its industrials business rose 29% in the three months to the end of June to EUR 2.32 billion ($2.75 billion), beating the EUR 2.09 billion in a company collected consensus of analyst forecasts.
Turnover increased by 24% to EUR 16.09 billion, better than forecasts of EUR 15.11 billion, while orders increased by 47% to EUR 20.49 billion, ahead of forecasts for EUR 16.32 billion.
“Siemens is consistently pursuing its goal of accelerated high-quality growth. In the third quarter, we delivered another performance – with strong and profitable growth across all businesses,” Chief Executive Roland Busch said in a statement.
Shareholders’ net profit of 1.35 billion euros for the quarter exceeded forecasts of 948 million euros.
The company said it now expects full-year revenues to grow 11% to 12%, up from its previous expectation of a 9% to 11% increase, boosted by higher sales of its factory automation and smart infrastructure activities.
Net profit for the year to the end of September is now expected to be between EUR 6.1 and EUR 6.4 billion. The company had previously sent for a bandwidth of 5.7 billion to 6.2 billion euros.
Other industrial companies have recently raised their outlook based on the faster-than-expected recovery from the pandemic in many sectors and stronger demand in China and the United States as their economies recover.
French rival Schneider Electric last month raised its profit and sales expectations for 2021, while Swiss ABB doubled its sales expectations and profitability improved more sharply.