# Siemens raises profit guidance again as orders surge Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-05 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Siemens Raises Profit Guidance Amid Post-Pandemic Demand Meta Description: Siemens experiences surge in demand following pandemic, raises profit guidance for third time this year. Orders increase by 47%, driving profit growth. URL: https://financedigest.com/siemens-raises-profit-guidance-again-as-orders-surgehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-05t050525z1lynxmpeh7407ortroptp4siemens-results-1736838053732-compressed.jpg) By John Revill ZURICH (Reuters) -Siemens became the latest industrial firm to report a post-pandemic surge in demand, prompting the German engineering and technology company on Thursday to raise its profit guidance for the third time this year. The trains-to-industrial software maker said it was seeing a broad-based increase in demand as customers around the world rebuilt their inventories and vaccination campaigns accelerated the economic recovery. The Munich company said its orders surged by 47%, driven by double digit growth in factory [automation and smart](https://www.financedigest.com/improving-your-home-with-smart-automation.html "Improving Your Home with Smart Automation") infrastructure. As a result Siemens hiked its [profit guidance for the third time in its 2021 business](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") year, following previous increases in February and May. It now expects full year sales and [profit to be higher](https://www.financedigest.com/polish-e-commerce-firm-allegro-eyes-higher-q1-profit.html "Polish e-commerce firm Allegro eyes higher Q1 profit") than previously thought after beating forecasts for sales, profit and orders during the third quarter. Siemens is consistently pursuing its goal of [accelerated high-value growth](https://www.financedigest.com/china-nov-export-growth-slows-but-imports-accelerate.html "China Nov export growth slows but imports accelerate"). In the third quarter, once again we delivered – with strong and [profitable growth in all businesses,” Chief](https://www.financedigest.com/bootmaker-dr-martens-warns-on-profit-as-finance-chief-walks.html "Bootmaker Dr Martens warns on profit as finance chief walks") Executive Roland Busch said in a statement. Shares in Siemens were indicated up 1.6% in Lang & Schwarz premarket trade. Higher [raw materials prices](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") and supply chain bottlenecks – for example in semi conductor chips – remained a problem, but were being overcome, he said. Adjusted operating [profit at Siemens’ industrial business rose](https://www.financedigest.com/zur-rose-delays-profitability-break-even-to-2024.html "Zur Rose delays profitability break-even to 2024") 29% to 2.32 billion euros ($2.75 billion) in the three months to the end of June, beating the 2.09 billion euros in a company-gathered consensus of analyst forecasts. Revenue rose 24% to 16.09 [billion euros](https://www.financedigest.com/mercedes-benz-to-buy-back-up-to-4-billion-euros-in-shares-by-2025.html "Mercedes-Benz to buy back up to 4 billion euros in shares by 2025"), beating forecasts for 15.11 billion euros, while orders surged 47% to 20.49 billion euros, ahead of forecasts for 16.32 billion. Shareholders’ net income of 1.35 billion euros for the quarter beat forecasts for 948 [million](https://www.financedigest.com/hellofresh-sees-2023-core-profit-of-460-540-million-euros.html "HelloFresh sees 2023 core profit of 460-540 million euros") euros. The company said it now expects its full year revenue to rise by 11% to 12%, up from its previous view for an increase of 9% to 11%, [boosted by higher sales of its factory](https://www.financedigest.com/festive-cheer-boosts-profit-outlook-for-uks-card-factory.html "Festive cheer boosts profit outlook for UK’s Card Factory") automation and smart infrastructure businesses. Net income for the year to the end of September is now expected to be in the range of 6.1 [billion to 6.4 billion euros](https://www.financedigest.com/unicredit-gets-ecbs-green-light-for-second-1-billion-euro-share-buyback.html "UniCredit gets ECB’s green light for second 1 billion euro share buyback"). The company had previously guided to a range of 5.7 [billion to 6.2 billion euros](https://www.financedigest.com/amazon-com-to-invest-over-1-billion-euros-in-european-electric-van-truck-fleet.html "Amazon.com to invest over 1 billion euros in European electric van, truck fleet"). Other industrial companies have recently upped their guidance based on the faster than anticipated post-pandemic recovery in many sectors and stronger demand in [China and the United States as their economies](https://www.financedigest.com/china-steps-up-easing-cuts-lending-benchmarks-to-revive-faltering-economy.html "China steps up easing, cuts lending benchmarks to revive faltering economy") rebound. French rival Schneider Electric last month raised its [profit and revenue expectations](https://www.financedigest.com/portuguese-airline-tap-swings-to-profit-earlier-than-expected.html "Portuguese airline TAP swings to profit earlier than expected") for 2021, while Switzerland’s ABB doubled its revenue expectations and flagged a stronger improvement in profitability. ($1 = 0.8450 euros) (Reporting by John Revill) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---