Siemens significantly raised its full-year forecast on Wednesday after a strong first fiscal quarter that saw orders, revenue and net profit exceed market expectations.
The German conglomerate recorded a 39% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), while net profit for the period from October to December rose to 1.5 billion euros (1.81 billion dollars) against 1.1 billion euros for the same period. Last year.
Orders jumped 15%, with the company citing faster-than-expected recoveries in China and Germany after the Covid-19 slowdown. Siemens now expects full-year 2021 net profit of between € 5 billion and € 5.5 billion, with updated forecasts projecting high-digit growth percentages for the 12 months through ‘in September 2021.
EBITDA of 2.13 billion euros for the quarter exceeded consensus forecasts of 1.67 billion compiled by the company and 1.42 billion projected on average by analysts polled by Reuters.
“What we are seeing in Asia, and especially in China, is that there is massive demand, especially for these industries or for those end markets that benefit a lot from people staying at home, like the gaming industry and others, ”outgoing Siemens CEO Joe Kaeser told CNBC’s Annette Weisbach on Wednesday.
Kaeser also noted that China’s global export model has also helped boost demand from pro-foreclosure industries.
“Think of games on smart phones and the like, and that’s where the greatest demand has been, and they’re very modern industries, so they’re very automated lines and they need a lot of manufacturing software in the industry. automation, and that’s why has benefited a lot in this area. “
However, he suggested that Germany and the rest of Europe would be more of a “catching-up game” than an opportunity for long-term growth. Kaeser projected that the United States would be the biggest opportunity for the second half of the calendar year and until 2022.