Siemens raises full-year forecast after record quarterly sales

Siemens raised its full-year sales and profit forecast on Wednesday after the German engineering and technology group beat sales forecasts during the fiscal second quarter.

The maker of products ranging from trains to industrial software is confident, driven by a large growing backlog and further easing of supply chain bottlenecks.

The company now forecasts comparable revenue growth of 9% to 11% in the 12 months through the end of September, versus a previous forecast of an increase of 7% to 10%.

Siemens expects to raise basic earnings per share to a range of €9.60 to €9.90, up from €8.90 to €9.40 expected in February.

The company had already improved its full-year outlook in February, citing strong demand and backlog, which surged to 105 billion euros in the second quarter.

The projection came after Siemens reported that fiscal second-quarter revenue rose 14% to 19.42 billion euros. Analysts had expected 18.59 billion euros, according to research compiled by the company

Profit for the three months to the end of March rose 47% to 2.61 billion euros, close to forecasts of 2.70 billion.

The results of Siemens, whose sensors, controllers and software are used in factories, transportation systems and buildings, are seen as indicators of the health of the industrial economy at large.

The company’s net income nearly tripled to 3.55 billion euros, helped by a 1.59 billion book gain generated by the write-back related to the stake in Siemens Energy.

Source: Terra

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