Siemens 1Q Net Profit Increases, Beating Expectations; Raises Outlook -- Update
--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
--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
The company is projecting net income from EUR5 billion to EUR5.5
billion for the year, above its previous expectation of only
The move comes less than two weeks after Siemens said it would
review the outlook after publishing strong preliminary figures for
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
Write to Joshua Stein at email@example.com
(END) Dow Jones Newswires
February 03, 2021 03:11 ET (08:11 GMT)
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