Siemens reports big surge in orders as profit beats forecast

[ZURICH] Siemens reported a better-than-expected industrial profit on Thursday (Feb 10) as the German technology group said it was seeing "extraordinary" order intake from its customers.

Orders surged 52 per cent to 24.2 billion euros (S$37.1 billion), well ahead of expectations, the maker of trains and factory software said, as businesses stocked up on equipment and demand increased after the pandemic slowdown.

Industrial profit rose 12 per cent to 2.5 billion euros during the 3 months to the end of December, beating analyst forecasts for 2.3 billion euros.

Revenue during the quarter, the first of Siemens's 2022 financial year, rose 17 per cent to 16.5 billion euros beating forecasts for 16 billion euros. Net profit for the company rose 20 per cent to 1.8 billion euros.

"We had a very successful start into fiscal 2022," said chief executive Roland Busch in a statement. "All our businesses continued their high-value growth."

Siemens said it was seeing increased growth opportunities in many key markets and had avoided major disruptions from increased supply chain risks associated with electronics components, raw materials and logistics.

As one of the largest capital goods manufacturers, supplying equipment to factories, Siemens results provide an indication for the health of the broader industrial economy. REUTERS