--Siemens's first-quarter net profit, revenue and orders exceeded prior-year figures and market expectations

--The company recorded strong growth in China and Germany despite hurdles

--Discontinued operations mainly related to Flender contributed to the net-profit increase

 

By Joshua Stein

 

Siemens AG said Wednesday that net profit, revenue and orders for the first quarter of fiscal 2021 rose and beat expectations amid strong growth in China and Germany, and raised its guidance for the year at key points.

The German engineering conglomerate said net profit for the quarter ended Dec. 31 surged to 1.38 billion euros ($1.66 billion) from EUR1.08 billion in the first quarter of fiscal 2020.

The company cited a positive contribution from discontinued operations mainly related to Flender as well as adjusted earnings before interest, taxes and amortization for its industrial businesses, which rose to EUR2.13 billion from EUR1.53 billion.

Revenue for the quarter rose to EUR14.07 billion from EUR13.68 billion. The company said in January that performance was driven by the digital industries business where quarterly sales of EUR3.77 billion were ahead of consensus forecasts of EUR3.56 billion. Siemens said revenue at its four industrial businesses rose a comparable basis, with China and Germany leading growth.

Siemens said orders rose to EUR15.94 billion from EUR14.36 billion. All industrial businesses experienced order increases, but the company said its mobility business led the way with a higher volume of large orders.

Analysts had expected net profit of EUR864 million, revenue of EUR13.42 billion and orders of EUR14.54 billion, according to consensus provided by the company.

The company said the coronavirus pandemic brought about a complicated macroeconomic environment, which it expects will continue despite improving conditions in the first quarter, with pent-up demand and growth opportunities during the quarter varying by business and geographic region.

Siemens improved its guidance for the year ending Sep. 30, 2021. It now expects mid to high-single-digit-growth. Previously, it had expected moderate growth for comparable revenue and after-tax profit.

The company is projecting net income from EUR5 billion to EUR5.5 billion for the year, above its previous expectation of only moderate growth.

The move comes less than two weeks after Siemens said it would review the outlook after publishing strong preliminary figures for the quarter.

Analysts had expected the company's results to come in strong, with Jefferies saying an outlook upgrade was very likely.

Citi analysts had warned the company's outlook in January looked conservative.

 

Write to Joshua Stein at joshua.stein@wsj.com

 

(END) Dow Jones Newswires

February 03, 2021 03:11 ET (08:11 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Siemens (XE:SIE)
Historical Stock Chart
From Aug 2021 to Sep 2021 Click Here for more Siemens Charts.
Siemens (XE:SIE)
Historical Stock Chart
From Sep 2020 to Sep 2021 Click Here for more Siemens Charts.