Siemens on Wednesday lifted its guidance for the full year, after a strong fiscal quarter in which orders, revenue and net income exceeded market expectations.
The German conglomerate reported a 39% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization), while net income for October-December rose to 1.5 billion euros (1.81 billion euros). dollars) from 1.1 billion euros for the same period last year.
Orders rose 15%, with the company citing faster-than-expected recoveries in China and Germany following the Covid-19 recession. Siemens now expects net income for the full fiscal year 2021 of between € 5 billion and € 5.5 billion, with updated guidance predicting high growth rates in the 12 months to September 2021.
EBITDA of 2.13 billion euros for that quarter exceeded the consensus forecasts of 1.67 billion compiled by the company and 1.42 billion projected on average by analysts surveyed by Reuters.
“What we see in Asia, and especially 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 gambling industry and other similar products, “Siemens CEO Joe Kaeser told CNBC’s Annette Weisbach on Wednesday.
Kaeser also noted that China’s global export model has also helped increase demand for lock-in industries.
“Think of smartphone games and likes and that was the biggest demand, and these are very modern industries, so they are very automated lines and they need a lot of manufacturing software in automation and that’s why we have benefited a lot in that area. “
However, he suggested that Germany and the rest of Europe would be a “recovery game” rather than a long-term growth opportunity. Kaeser has projected that the US will be the biggest opportunity for the second half of the calendar year and until 2022.