Siemens forecasts rebound in automotive, machinery sectors

A stronger than expected rebound in the automotive and machinery industries where customers released their pent-up demand boosted Siemens’ first-quarter results, deputy CEO Roland Busch said on Wednesday.

Busch, who is to take over as CEO next month, told a news conference that the engineering company increased revenue in all regions, particularly Germany and China.

“For this reason, we are raising our outlook for fiscal 2021 – based on the assumption that this improvement will continue in the coming quarters, particularly for our short-cycle businesses,” Busch said.

The trains to industrial software company said it now expected growth in the mid to high single digit percentage range in the 12 months to the end of September, up from its previous view for moderate growth – equivalent to 3-5 per cent – it outlined in November.

The revision, in the last results under longstanding Chief Executive Joe Kaeser, came after the company beat expectations for orders, revenue and industrial profit in the three months to December 31.

The results were boosted by significant growth in China and a recovery in the factory automation sector, Siemens said.

The Munich-based company posted adjusted industrial profit rising 39 per cent to €2.13 billion ($2.56 billion), beating forecasts for €1.67 billion in a company-gathered consensus of analysts’ forecasts.

First-quarter orders rose 11 per cent to 15.94 billion, beating forecasts of €13.90 billion while revenue rose to €14.07 billion, beating the €12.73 billion expected.

“Our team has delivered an outstanding performance in a rather complex environment,” said Kaeser, who steps down on Wednesday after leading Siemens since August 2013.

“I am grateful to be able to hand over such a strong enterprise to the next generation of management,” added the 63-year-old, who will be replaced by deputy CEO Roland Busch.

Siemens had already pre-announced preliminary figures for its first quarter, showing how its digital industries and smart infrastructure had increased sales and beaten profit expectations.

Mobility, Siemens’s rail and signalling business, slightly missed forecasts but reported a big increase in orders.