Siemens buoyed by industrial results to beat earnings expectations

By William Smith
The German industrial manufacturing company Siemens has released its earnings for the second quarter of 2019, beating analysts predictions. The industr...

The German industrial manufacturing company Siemens has released its earnings for the second quarter of 2019, beating analysts predictions.

The industrial side of the business performed particularly well. Siemens said in its press release that earnings “for Industrial Business climbed 7% to €2.4bn, with most businesses increasing their performance.” As the Financial Times reports, this figure eclipses analysts’ estimates of €2.24bn (US$2.51bn).

While net income fell 5% to €1.9bn ($2.13bn) the company said that this was “near the prior-year level which benefited substantially from a €0.7bn Adjusted EBITA from Centrally managed portfolio activities.”

SEE ALSO:

Other results contained within the report include the fact that, across the company, orders were up by 6%, totaling €23.6bn ($26.42bn), while revenue rose 4%, to €20.9bn ($23.4bn). Furthermore, Siemens revealed that “excluding currency translation and portfolio effects, orders increased 4% and revenue was up 2% compared to Q2 FY 2018.”

Joe Kaeser, the President and Chief Executive Officer of Siemens, was confident in the future health of the company amidst these results, saying: "We delivered on our promises again this quarter, and even exceeded expectations in many areas. Now, we enter into a new era to become an even stronger and more focused Siemens."

The new era to which Kaeser refers comes with a renewed focus on what the company calls “Smart Infrastructure” as well as “Digital Industries”. The former involves the building part of the business and “intelligently connects energy systems, buildings and industries to adapt and evolve the way we live and work.” The latter is based around digital transformation, and describes itself as “pav[ing] the way for still more innovation, new services and even entirely new, data-based business models.”

Share

Featured Articles

India’s smart manufacturing electric vehicle future

Indian IT service Panache Digilife has announced a manufacturing and supply chain agreement with electric vehicle manufacturer Revamp Moto

Manufacturing a legacy of safety, sustainability, and skill

Michael Vale, Group President for 3M’s safety & industrial business, explores diversity & environmental stewardship in manufacturing

5 minutes with: Simon Michie, Pulsant CTO

Simon Michie, CTO at Pulsant, explains why edge computing will transform manufacturing operations, but success will depend on having partnerships in place

Microsoft’s Çağlayan Arkan explores the supply chain

Procurement & Supply Chain

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

AI & Automation