Siemens on Friday for the second time this year increased its year-round profit and sales direction, after the German conglomerate beat the earnings forecast for the second quarter.
Siemens President and CEO Roland Busch told CNBC on Friday that the company has “good momentum” to enter the second half of the fiscal year, with growth and production back to pre-Covid levels in Europe and China.
Siemens reported adjusted EBITDA for the second quarter (earnings before interest, taxes, depreciation and amortization) for its industrial activities of 2.1 billion euros ($ 2.53 billion), an increase of 31% over the same period last year, as the company abruptly recovered from a pandemic caused by the crash.
Net income in the second quarter reached 2.4 billion euros, earnings per share rose to 2.82 euros, while orders rose by 8% in nominal terms to 15.9 billion euros, thanks to a sharp rise in the health unit Siemens Healthineers.
“The momentum of growth has come in particular from the automotive industry, mechanical engineering, our software business and – from a geographical perspective – from China,” Busch said in a statement on Friday.
“In addition to satisfying margin trends in our industrial companies, our successful portfolio management has also paid off.”
In light of the results, Siemens has increased its outlook on net revenue for fiscal 2021 to between 5.7 and 6.2 billion euros, compared to its previous projection between 5 billion and 5.5 billion euros.
Busch also told CNBC on Friday that he expects the company to benefit from accelerating customer transitions toward digitization, automation and cleaner energy strategies.
“Our markets are growing faster than GDP because we are sitting on those product portfolios that are pulling higher demand, returning again to the level of automation but also CO2 reduction, so energy efficiency is a huge topic,” he said.
“Also when you see stimulus programs then start, they really give us the wind because they’re focused on not investing in what’s been invested in the past – they want to do new things when it comes to energy efficiency, using fewer resources, but also automation and digitization is one of the main topics. “