Siemens significantly boosted its full-year target on Wednesday after a strong early fiscal quarter that saw orders, revenue and net income exceed market expectations.
The German conglomerate recorded a 39% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), while net income for the period October to December increased to 1.5 billion euros ( $ 1,821 million), from 1.1 billion euros in the same period. the previous year.
Orders jumped 15%, and the company cited faster-than-expected recoveries in China and Germany after the Covid-19 recession. Siemens now expects a net profit for fiscal 2021 total of between € 5,000 and € 5.5 billion, with updated guidelines predicting high single-digit growth rates over the twelve months to September 2021.
EBITDA of 2.133 billion euros in the quarter exceeded the agreed forecasts of 1.667 billion prepared by the company and 1.4 billion projected on average by analysts surveyed by Reuters.
“What we see in Asia, and of course in China, is that there is a massive demand, especially for those industries or those end markets that benefit a lot from the people who stay at home, such as the video game industry and related, “Siemens reported. CEO Joe Kaeser told CNBC’s Annette Weisbach on Wednesday.
Kaeser also noted that the Chinese global export model also helped increase demand from industries that allow vehicles to be blocked.
“Think of the smartphone games and the ones I like, and this is where there has been a greater demand, which are very modern industries, so they are highly automated lines and they need a lot of manufacturing software for automation, and that’s why we have benefited a lot in this area. “
However, he suggested that Germany and the rest of Europe would be more of a “recovery game” than a long-term growth opportunity. Kaeser projected that the United States will be the biggest opportunity for the second half of the calendar year and through 2022.