Siemens Third-Quarter Profit and Revenue Rose

   By Ed Frankl 
 

Siemens AG on Thursday reported a rise in third-quarter profit and revenue that beat expectations, and raised its full-year outlook on the back of the global economic recovery.

Net profit attributable to shareholders at the German engineering conglomerate rose to 1.35 billion euros ($1.60 billion) for the period ended June 30 from EUR539 million a year earlier.

Siemens said revenue for the quarter increased to EUR16.10 billion compared with EUR12.98 billion for the year-earlier period, on double-digit growth in its Healthineers subsidiary--helped by high-selling Covid-19 tests--as well as its digital industries and smart infrastructure units.

Orders jumped to EUR20.49 billion from EUR13.91 billion, reflecting the market's recovery, Siemens said.

Revenue was ahead of expectations of EUR15.11 billion and orders were ahead of expectations of EUR16.32 billion, according to analysts' consensus provided by the company.

Continuing supply-chain risks associated primarily with electronics components and higher raw-material prices were successfully mitigated during the quarter, the company said.

At Siemens's core industrial business, adjusted earnings before interest, taxes and amortization increased 29% to EUR2.32 billion, while the adjusted Ebita margin for the division rose to 15.3%. Analysts had expected EUR2.10 billion for the segment's adjusted Ebita.

Siemens raised its guidance for fiscal year 2021 for net income to between EUR6.1 billion and EUR6.4 billion, which includes its recent acquisition of oncology specialist Varian by Healthineers, from previous guidance of between EUR5.7 billion and EUR6.2 billion.

It also ticked up its comparable-revenue expectations to growth of 11%-12% from 9% to 11% previously.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

August 05, 2021 01:35 ET (05:35 GMT)

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