November 15, 2023, Bavaria, Munich: A flag with the word “Siemens” hung in front of the company’s headquarters. Siemens releases data for the 2022/23 financial year. Photo: Karl-Josef Hildenbrand/dpa (Photo by Karl-Josef Hildenbrand/Photo Alliance via Getty Images)
Carl Josef Hildenbrand | Image Alliance | Getty Images
German industrial technology giant Siemens It reported quarterly operating profit on Thursday that beat expectations and affirmed its full-year outlook.
Industrial profits for the quarter ended in June were 3 billion euros ($3.3 billion), up 11% from the same period last year. The number was also higher than the analyst consensus the company followed.
Siemens Chief Executive Roland Busch told CNBC on Thursday that the company’s results for the quarter were “very, very strong.”
The stock was down 0.65% as of 9:30 a.m. London time on Thursday. Pan-European Stoke 600 The index fell 1.13%.
The company attributed third-quarter growth to strong demand in its electrification and industrial software businesses, but noted that the automation business remains “challenging.”
The company said “exceptionally high order growth in the software business, driven by a large number of licensed software contract wins,” with profitability gains more than offsetting lower profits in the automation segment.
“The Smart Infrastructure business continued to deliver broad-based year-over-year margin and profitability growth driven by higher revenue, higher capacity utilization and continued productivity gains,” the company added.
According to Reuters, in a conference call after the release of the financial report, Siemens CEO Busch told reporters that the software business cannot repeat profits in the same way.
Siemens says its automation business has slowed sharply during this period its previous results.
The business also confirmed its outlook for the full fiscal year on Thursday, but noted that Siemens Group’s comparable revenue growth is expected to be at the lower end of its forecast range of 4%-8%.
In an interview with CNBC, Bush attributed the forecast to “difficult market conditions,” adding that the key issues are weak industrial markets and continued inventory buildups, which will take time to draw down.
He said the company has the right product mix and is leveraging artificial intelligence to support customers.
“All in all, we look forward to what’s to come,” Busch said.
