Siemens Q3 profits jump as electrification demand rises

8th Aug 2024 11:18

(Sharecast News) - German industrial technology conglomerate Siemens held on to full-year guidance on Thursday after posting a big jump in third-quarter profits.

Net income totalled €2.13bn in the three months to 30 June, up 48% on last year, with revenues rising 5% to €18.9bn, bolstered by double-digit increases in Smart Infrastructure as demand for AI-driven data centres and energy customers continues to surge.

Profits from the industrial business were up 11% year-on-year at €3.03bn, ahead of the €2.84bn expected by the market.

Orders, however, were down 15% at €19.78bn, as double-digit increases in Digital Industries and Smart Infrastructure were offset by a weaker performance in Mobility as the division struggled against record comparatives the year before.

Conditions for the industrial automation business also remained challenging due to customers holding elevated stock levels/

"We grew profitably in the third quarter, continuing to benefit from the high demand in electrification. Another growth driver was our particularly strong industrial software business, which won several large license contracts," said chief executive and president Roland Busch.

Looking ahead, the company reiterated guidance given at the half-year stage for comparable revenue growth of 4-8% for the year ending 30 September.

Shares were down 0.3% at €155.48 by 1321 in Frankfurt.