Siemens raises forecast as it reports strong third quarter profits

Munich (dpa) – Siemens raised its forecast for the third time in the current book year as it reported a rise in turnover and profits for the April-to-May quarter on Thursday from its Munich headquarters.

“We have delivered once again in the third quarter, with strong and profitable growth in all business units,” chief executive Roland Busch said.

“Siemens continued its accelerated high-value growth trajectory across all businesses and regions also in the third quarter,” the company said.

The company posted net income at 1.5 billion euros (1.8 billion dollars) almost three times the 535 million euros in the April-to-May quarter of last year, when the company was hit by the coronavirus pandemic and incurred costs in spinning off its energy division.

Turnover rose to 16.1 billion euros from 13.0 billion last year.

Chief financial officer Ralf P Thomas said the results continued on from the strong first half despite difficult conditions.

Siemens is expecting strong results in the final quarter of its book year, which ends in September, raising its guidance for fiscal 2021. It now expects companywide revenue growth of 11 to 12 per cent.

The new profit target is between 6.1 billion and 6.4 billion euros, up from between 5.7 billion and 6.2 billion euros. Turnover is also expected to accelerate.

Siemens, which is increasingly focusing on digitalization, is benefiting from the current transformation of the economy, but is facing risks from the worldwide increase in material costs and the semiconductor shortage.

In the past quarter, the company received a tailwind from its subsidiary Siemens Healthineers, which has already presented its figures and is benefiting from the sale of rapid coronavirus tests.

After strong growth in the past quarter, Healthineers raised its forecast at the end of last week – for the third time.