Siemens raises its outlook for the full year after sales in the second quarter beat forecasts

A Siemens logo in Germany. The industrial giant says that a newly started green hydrogen plant in the country will use wind and solar power from Wunsiedel Energipark.

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Siemens raised its full-year sales and earnings guidance on Wednesday after the German engineering and technology group beat second-quarter sales forecasts.

The maker of products ranging from trains to industrial software now expects comparable revenue growth of 9% to 11% in the 12 months to the end of September, up from a previous outlook for a rise of 7% to 10%.

Siemens also expects to raise its underlying basic earnings per share to a range of 9.60 euros to 9.90 euros, up from the 8.90 euros to 9.40 euros it said it expected in February.

With a gain from the partial reversal of a previous charge, overall EPS is expected to increase to a range of 11.61-11.91 euros.

The company had already raised its full-year outlook in February, citing strong demand and the huge order backlog, which rose to 105 billion euros ($115.58 billion) in the second quarter.

The increased guidance came after Siemens reported second-quarter revenue rose 14% to 19.42 billion euros ($21.38 billion). Analysts in a company-compiled poll had expected 18.59 billion euros.

Industrial profit in the three months to the end of March rose 47% to 2.61 billion euros, missing forecasts for 2.70 billion euros.

“Siemens continues its outstanding performance, delivering several records, including impressive margin increases and record results for Digital Industries and Smart Infrastructure, as well as another record order backlog,” CEO Roland Busch said in a statement.

The results of Siemens, whose sensors, controllers and software are used in factories, transport systems and buildings, are seen as indicators of the health of the wider industrial economy.

The group’s industrial profits include gains from its digital industries, smart infrastructure, mobility and healthcare, which form the core of the business.

The results underscore the recent upward trend in global industry as it overcomes supply chain bottlenecks that plagued it until last year.

Swiss company ABB recently raised its full-year sales and profit guidance on the back of a strong first quarter, while French train maker Alstom last week said market momentum remained very positive.

Siemens’ net income nearly tripled to 3.55 billion, helped by the company booking a non-cash gain of 1.59 billion euros from reversing a write-down related to its investment in Siemens Energy.

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