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Good results for Siemens

by on11 November 2021

Coming on the back of supply chain issues

Siemens fourth quarter sales and orders beat forecasts and said that supply chain problems that have hindered industrial revival in the wake of the pandemic will ease next year.

For those who came late, Siemens makes factory software and trains. The outfit expects further profitable growth as problems thrown up by shortages of components and log-jammed logistics networks are expected to improve during its 2022 fiscal year.

In the three months to the end of September, Siemens' sales rose 18 per cent to 17.44 billion euros ($20.17 billion). The cocane nose jobs of Wall Street only expected $16.82 euros.

Orders rose 26 per cent to 19.07 billion euros, ahead of expectations for 17.56 billion, it added.

The German company said it was seeing growth spurts in key markets despite "supply chain risks associated primarily with electronics components and raw materials," although it had cut the impact of such problems during the quarter.

Adjusted operating profit from its industrial business fell 14 per cent to 2.27 billion euros, missing a forecast of 2.45 billion. Net income declined 29 per cent to 1.33 billion euros.

On an annual basis, net profit rose 59% to 6.69 billion euros, exceeding forecasts and the company's own guidance of 6.1 billion to 6.4 billion euros.

Siemen’s president and chief executive Roland Busch said that in a challenging environment, the company won market share and clearly exceeded our net income guidance.

Busch, who took control from longstanding predecessor Joe Kaeser in October, has been helped by a post-COVID recovery as industrial activity and demand pick up.

The momentum helped Siemens hike its guidance four times during its 2021 business year.

The company has also faced difficulties getting semiconductor chips and other components because of jammed-up logistics chains and suppliers' stuttering restarts of production after pandemic shutdowns.

For its 2022 business year, Siemens said it expected mid-single-digit comparable revenue growth, net of currency translation and changes to its portfolio of companies.


Last modified on 12 November 2021
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