Siemens reported better-than-expected quarterly operating profit. The German industrial technology giant posted an industrial profit of 3 billion euros ($3.3 billion) in the quarter ending in June. This figure was 11% higher than last year’s quarter and above analyst expectations.
However, comparable orders declined by 15% from the previous year, reaching 19.8 billion euros. Siemens noted that order volume increased in double digits for its digital industries and smart infrastructure businesses but declined sharply in the mobility business. CEO Roland Busch described the company’s performance during the quarter as “very, very strong.” Despite this, Siemens shares were slightly lower in early trading on Thursday.
Siemens exceeds quarterly profit expectations
The company attributed its growth to strong demand in its electrification and industrial software businesses. Siemens highlighted “exceptionally high order growth in the software business driven by several large contract wins for licensed software.” Profitability growth in these areas offset a decline in the automation business.
Siemens confirmed its outlook for the full financial year but expects comparable revenue growth for the group to be at the lower end of the projected 4%-8% range. CEO Busch attributed this projection to “difficult market environments,” citing critical issues of industrial market weakness and continued stock build-up. Busch emphasized that Siemens has the right portfolio and incorporates artificial intelligence to support customers.
“All in all, we’re looking forward to what comes,” he said.
