The German tech giant reported a profit that was 11% higher than that recorded in the same period last year.
Siemens announced on Thursday that it had made an industrial profit of €3.3bn during the third quarter of the year, beating a forecast of €2.84bn given by company analysts.
The 11% year-on-year jump was boosted by high demand for Siemens’ electrification and industrial software businesses, although the firm noted that challenges persist in its industrial automation division.
During its previous results report, Siemens noted that this unit, which provides technologies to enhance industrial processes, was struggling.
Siemens’ overall orders, meanwhile, fell 15% year-on-year to €19.8bn, although a bulk of train orders last year pushed up this total.
The tech giant also confirmed its guidance for the fiscal year until the end of September.
Revenue growth is expected at the lower end of a range between 4% to 8%
“Overall, we achieved clear increases in both net income and profit margin in the third quarter,” said Ralf P. Thomas, Chief Financial Officer of Siemens.
“We again generated strong free cash flow, and we will re-emphasise our clear focus on cash with a strong fourth quarter.”
The Digital Industries’ profit margin is estimated to be at the lower end of the range from 18% to 21%.
The profit margin at Siemens’ Smart Infrastructure division is expected to be at the upper end of a target range between 16% to 17%.
Siemens’ shares were up 1.51% in daily trading on Thursday afternoon.
Source: Euro News
