November 15, 2023, Bavaria, Munich: A flag with the word “Siemens” in front of the company headquarters. Siemens announces figures for the 2022/23 financial year. Photo: Karl-Josef Hildenbrand/dpa (Photo by Karl-Josef Hildenbrand/picture alliance via Getty Images)
Karl-Josef Hildenbrand | Image Alliance | Getty Images
German industrial technology giant Siemens on Thursday reported better-than-expected quarterly operating profit and affirmed its full-year outlook.
Industrial profit was 3 billion euros ($3.3 billion) in the quarter to the end of June, up 11% from the same period last year. The figure was also above the analyst consensus because the company followed the guidance.
Shares were down 0.76% at 8:27 a.m. London time on Thursday. Across Europe Stoxx 600 Stocks The trading index decreased by 1.04%.
Siemens said the growth in the third quarter was driven by strong demand in electrification and industrial software, but noted that the automation sector remained “challenging”.
The company said there was “particularly strong growth in the software business driven by several large contract wins for licensed software,” with higher profit growth more than offsetting a decline in automation profits.
“Smart Infrastructure continues to grow earnings and profitability across the board year-over-year driven by higher revenues, increased capacity utilization and continued productivity improvements,” the company added.
Siemens has signaled a sharp decline in its automation business in its previous results.
The business confirmed its outlook for the full financial year, but noted that comparable revenue growth for the Siemens Group is expected to be at the lower end of its forecast range of 4%-8%.
