German conglomerate Siemens AG reported Thursday a profit in its third quarter, compared to last year’s loss, with good growth in revenues and orders. Meanwhile, Profit Industrial Business and margin declined from last year.
Further, the company backed its forecast for group earnings and revenue growth, but trimmed its comparable revenue growth view for Digital Industries. In Germany, the shares were losing around 6 percent in the morning trading.
Roland Busch, President and Chief Executive Officer, said, “We again achieved profitable growth and showed our competitive strength across all our businesses. We have seen normalization of demand, particularly in China and in short-cycle business.”
For fiscal 2023, Siemens Group continues to expect the profitable growth of industrial businesses to drive an increase in earnings per share pre PPA to a range of 9.60 euro to 9.90 euro in fiscal 2023 excluding Siemens Energy Investment.
The company also continues to expect comparable revenue growth in the range of 9 percent to 11 percent.
Meanwhile, Digital Industries segment is now projected to achieve comparable revenue growth of 13 percent to 15 percent, down from previously expected 17 percent to 20 percent. The profit margin is now expected to be in the range of 22 percent to 23 percent, lower than previously expected range of 22.5 percent to 23.5 percent.
Further, Smart Infrastructure continues to expect comparable revenue growth of 14 percent to 16 percent and a profit margin in the range of 14.5 percent to 15.5 percent; and Mobility continues to expect comparable revenue growth of 10 percent to 12 percent and a profit margin in the range of 8 percent to 10 percent.
For the third quarter, net income was 1.44 billion euros, compared to loss of 1.53 billion euros last year.
Basic earnings per share were 1.61 euros, compared to loss of 2.06 euros last year. The prior year’s loss mainly reflected an impairment of the stake in Siemens Energy in the amount of 2.7 billion euros.
Earnings per share before purchase price allocation accounting or pre PPA were 1.78 euros, compared to prior year’s loss of 1.85 euros.
Profit Industrial Business was 2.75 billion euros, down 4 percent from last year’s 2.88 billion euros. Profit margin Industrial Business declined to 15.3 percent from 17 percent a year ago.
Revenue grew 6 percent to 18.89 billion euros from last year’s 17.87 billion euros. On a comparable basis, revenues grew 10 percent, excluding currency translation and portfolio effects.
Orders grew 10 percent to 24.24 billion euros from 22.01 billion euros a year ago, driven by sharply higher volume from large orders in Mobility. Orders rose 15 percent on a comparable basis.
In Digital Industries, orders fell 37 percent from last year.
In Germany, Siemens shares were trading at 138.06 euros, down 5.8 percent.
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