Siemens Beats Earnings Forecasts
High-tech factories continued to drive growth for Siemens in the first three months of 2021. This pushed the company to hike its guidance for the second consecutive quarter.
In its second quarter of the fiscal year, the German tech giant has beaten analyst expectations. Revenue of €14.7 billion rose 6% from the same period in the year prior, with €2.1 billion in adjusted earnings before interest, taxes, and amortization (Ebita) for its industrial business 31% higher than a year ago. Revenue growth was highest in the key digital industries segment.
"As our order intake and revenue in the second quarter impressively demonstrate, our customers place great trust in us. I’m extremely pleased that all our businesses are delivering excellent results and that we’re growing profitably, despite continuing uncertainties. My thanks go to all the people at Siemens worldwide for their dedication and for always embracing a growth mindset," said Roland Busch, President and CEO of Siemens.
Exchange rates remain a drag on revenue. The euro has strengthened more than 11% against the dollar over the past year, which is consequential for a large multinational, and Siemens expects negative currency effects to strongly burden volume and earnings growth in 2021. In the last quarter alone, exchange rates took 4% off revenue and order growth year-over-year, the group said.
Siemens also hiked its full-year outlook for the second consecutive quarter, raising revenue growth expectations on a comparable basis, which excludes currency effects, to between 9% and 11% from previously-guided mid- to high-single-digit growth. The group also expects its profit margin to inch up from 20% to 21%, while net income is projected to shoot up from a range of €5 billion to €5.5 billion to between €5.7 billion and €6.2 billion.