Siemens Raises Fiscal 2023 Guidance After 2Q Profit Soared

By Pierre Bertrand

Siemens reported higher fiscal second-quarter net profit, exceeding analyst expectations, and raised its fiscal 2023 guidance after record profitability for its industrial businesses.

The German industrial company on Wednesday reported 3.48 billion euros ($3.78 billion) in quarterly net profit attributable to shareholders, compared with EUR1.03 billion in the prior-year period, on revenue that grew 14% to EUR19.42 billion.

Orders in the second quarter increased 13% on year to EUR23.64 billion, for a book-to-bill ratio of 1.22, driven by its mobility business where orders more than doubled in the quarter, Siemens said.

Quarterly profit at its industrial companies rose to EUR2.61 billion, compared with EUR1.78 billion a year ago.

Within them, profit at its digital industries and smart infrastructure businesses grew 57% and 75%, respectively.

Digital industries' quarterly profit reached the highest-ever level as profitability rose in all automation businesses supported by higher revenue. Smart Infrastructure also reached its highest profit level due to higher revenue and capacity utilization, Siemens said.

Analysts had expected shareholder-attributable net profit of EUR3.11 billion in the quarter and EUR18.59 billion in revenue, according to the company-provided consensus.

Siemens upgraded its fiscal-year guidance for the group and for its digital industries, smart infrastructure and mobility divisions.

Siemens said it expects 2023 comparable group revenue growth to be between 9% and 11%, up from 7% to 10% previously.

Digital industries expects fiscal 2023 comparable revenue growth of between 17% to 20%, up from 12% to 15% previously, with a profit margin now expected between 22.5% and 23.5%.

Smart infrastructure expects fiscal 2023 comparable revenue growth of between 14% and 16%, up from 9% to 12% previously, with a profit margin now expected between 14.5% to 15.5%.

The company's mobility business expects fiscal 2023 comparable revenue growth of between 10% and 12%, up from 6% to 9% previously.

Write to Pierre Bertrand at [e-mail]

(END) Dow Jones Newswires

May 17, 2023 01:16 ET (05:16 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.