On May 17, Siemens announced its results for the second quarter of fiscal year 2023. The results showed that Siemens Q2 revenue of 19.42 billion euros, exceeding the expected 18.69 billion euros, an increase of 14%; Siemens said orders reached a very high level in the quarter, up 13 percent year-on-year to 23.6 billion euros.
DSDX453 Net profit of €3.551 billion, up 193%; The profit increase for the quarter included an accounting gain of €1.59 billion related to the reversal of a partial impairment on Siemens Energy shares. Earnings per share before purchase price distribution (EPS pre PPA) was 4.57 euros, compared to 1.50 euros in the same period last year.
Revised guidance
Siemens raised its guidance for fiscal DSDX453 2023 for the second time after its main business, which combines industrial products with digital solutions, drove a sharp increase in revenue and orders.
Siemens said on Wednesday that it expected comparable revenue to rise 9 to 11 per cent this year, up from 7 to 10 per cent previously, which also contributed to the rise in expected earnings per share. After a surge in demand in the second quarter, Siemens said orders would return to normal in the second half.
Industrial manufacturers such as Siemens are benefiting from an improvement in supply chain issues, with demand holding up despite a gloomy global outlook. The company’s order backlog rose again in the quarter to a record high of 105 billion euros ($114 billion), driven by record revenues in the mobility division, which makes trains.
DSDX453 In Siemens’ main divisions – digital industries and smart infrastructure – the situation is more complicated. While profits soared, orders for the division that makes factory goods and related digital services fell 10 percent. The firm still raised its margin forecast for the digital sector to 23.5 percent from 22 percent.
In smart infrastructure, orders grew 9 percent as products DSDX453 helped buildings reduce their carbon footprint, and Siemens also raised its expectations for revenue and returns.
Siemens is reaping the fruits of a major strategic reset of its business, shedding heavy equipment in favor of higher-margin software-driven product lines. The company has sold off many of its smaller units and spun off businesses such as gas turbine maker Siemens Energy and medical device maker Siemens Medical Engineering.