Siemens raises sales and profit forecast to 2023 after strong start | – #Siemens #raises #sales #profit #forecast #strong #start
ZURICH, Feb 8 (Reuters) – Siemens ( SIEGn.DE ) reported better-than-expected quarterly profit in its industrial business on Wednesday and raised full-year sales and profit guidance, boosted by a strong start to fiscal 2023.
The trains and industrial software maker 2.7 in the industrial business in the first fiscal quarter through the end of December billion euro (2.90 billion dollars) earnings and the company’s consensus of analyst forecasts of 2.50 billion reported that the euro exceeded forecasts.
Chief Executive Roland Busch said the company had made its strongest start to a financial year yet as it worked through a record order backlog of 102 billion euros.
“Our outstanding order backlog in terms of quality and quantity, strong across the Siemens Team execution along with its capabilities, gives us the confidence to raise our outlook for fiscal 2023,” Busch said in a statement.
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Like other industrial companies, Siemens saw a huge increase in orders last year as customers pushed forward orders to avoid supply chain disruptions caused by sticky logistics chains and shortages of key parts such as semiconductor chips.
Siemens, which pre-announced results due on Thursday, is now down 7% for the full year.10% said he expects revenue growth. It had previously expected growth of 6% to 9%.
It also raised its earnings guidance, saying it expected core earnings per share to be between 8.90 and 9.40 euros, up from 8.70 euros last November.
Most of the growth is expected to come from digital industries – Siemens’ factory automation business. Smart Infrastructure, which makes products to automate and manage buildings, also increased sales and profit margins.
Chief Financial Officer Ralf Thomas said Siemens was “temporarily and purposefully stockpiling critical stocks” to enable it to meet customer demand in the coming months.
In the October-December period, Siemens said its revenue rose 8% to 18.1 billion euros, in line with estimates.
Net profit to shareholders fell to 1.48 billion euros, in line with forecasts.
The results of Siemens, whose sensors, components and software are used in factories, transportation systems and buildings, are seen as indicators of the health of the wider industrial economy.
Industrial automation company Rockwell Automation last month reported a 9.9% increase in first-quarter organic sales and raised its sales growth forecast.
Swiss rival ABB ( ABBN.S ) said last week it expects a strong start to 2023, with revenue growth in the double-digit percentage range in the first three months of 2023.
($1 = 0.9322 euros)
By John Revill report; Edited by Leslie Adler and Jonathan Oatis
Our standards: Thomson Reuters Trust Principles.
2023-02-09 04:34:22
Source – reuters
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