Siemens raises guidance after posting highest-ever industrial profit

Siemens reported its highest ever quarterly 'industrial' profit and new orders Thursday, beating analysts forecasts and leading the German industrial group raise its full-year profitability guidance.

The company's products range from trains to factory software, and building control systems. It saw improvement?across the majority of its industrial businesses.

Siemens' industrial profit grew by 25% in the quarter ended June 30 to EUR3.52 billion (USD4.09 billion), its highest ever quarterly figure.

The company-assembled 'consensus' of analyst estimates showed that the figure was up from EUR2.82billion a year earlier.

The company's revenues grew 7%, to EUR20.79billion, exceeding the forecast of EUR20.64billion, and orders jumped 13%, to EUR27.90billion, its highest ever quarterly figure.

Siemens has raised its profit forecast for the full year ending in September. It now expects earnings of EUR11.20 - EUR11.50 per share, up from EUR10.70 - EUR11.10.

In a press release, Chief Executive Roland?Busch said: "We delivered a?very successful?quarter with record orders and profits."

He said that the focus of the company on industrial AI and its products, which enable customers to?speed up their innovation?and increase their productivity?, is driving growth.

Siemens' Digital Industries, which produces factory controllers and software, saw its profits increase by a whopping?44% during the third quarter. This was due to job cuts aimed at restoring the company's competitiveness, as well as a strong demand from China and the United States. Reporting by John Revill Editing Linda Pasquini & Miranda Murray

(source: Reuters)