Siemens raises outlook as global economy rebounds

Roland Busch, CEO of Siemens, ahead of the virtual annual shareholders’ meeting in Munich on February 3, 2021.

AP Photo / Matthias Schrader, Dossier, Pool

FRANKFURT, Germany (AP) – Germany’s Siemens AG on Thursday raised its outlook for the year, joining other major European industrial companies in signaling that the economic recovery from the coronavirus pandemic is accelerating despite shortages of parts and concerns about the spread of the delta variant.

The rebound in global demand for manufacturing infrastructure and software led to a sharp increase in orders in the April-June quarter at Munich-based Siemens AG, with an order from US rail company Amtrak as a major contributor .

Siemens said orders saw “double-digit growth in all industrial companies and reporting regions.”

The engineering and manufacturing company has raised its outlook for its fiscal year, joining Volkswagen and Airbus to raise their forecast for business performance amid a global recovery after the worst pandemic shutdowns in the April-June quarter a year ago.

Siemens has warned that its business could be affected by the same shortage of semiconductors for electronic components that has forced automakers to cut production. He said he was also seeing higher costs for raw materials, parts and freight services.

The company said its order backlog increased 47% to 20.5 billion euros ($ 24.2 billion). This figure was increased by 2.8 billion euros in contracts awarded by Amtrak for 73 trains to be built at the company’s plant in Sacramento, California.

The order book also benefited from an order for passenger cars in the Czech Republic and a signaling system in Taiwan. In addition, Siemens recorded strong increases in industrial software orders. Part of the current strong manufacturing demand was due to companies increasing production to fill inventories and reserves to mitigate the risk of disruption to their supply chains.

Siemens CEO Roland Busch said in a statement that the company is benefiting from “the strong economic recovery in our key industry verticals. These include, for example, the automotive industry, machine building and electronics, but also the infrastructure market, including areas such as power distribution, data centers and transportation.

Siemens has raised its forecast for net profit this year to 6.1 billion-6.4 billion euros, from 5.7 billion-6.2 billion euros previously. Net profit for the most recent quarter, the company’s third in the fiscal year, was 1.48 billion euros, compared to 535 million in the previous year’s quarter.

The net result benefited from a positive development of the result from discontinued operations, which showed a loss of 403 million euros in the quarter of the previous year.

About Carrie Scheer

Check Also

Global Precious and Non-Ferrous Metals Industry Basic Outlook to 2026 – Track developments in an easily accessible document with clearly presented tables and charts

DUBLIN, November 17, 2021– (BUSINESS WIRE) – The report “Global Precious and Non-Ferrous Base Metals …

Leave a Reply

Your email address will not be published. Required fields are marked *