ZURICH (Reuters) – Siemens raised its full year sales and profit guidance on Wednesday after the German engineering and technology group beat sales forecasts during its second quarter.
The maker of products ranging from trains and industrial software now expects comparable revenue growth of 9% to 11% in the 12 months to the end of September, up from its previous view for an increase of 7% to 10%.
Siemens also expects to increase its underlying basic earnings per share to a range of 9.60 euros to 9.90 euros, up from the 8.90 euros to 9.40 euros it said it expected in February.
With a gain from the partial reversal of a previous charge, the overall EPS is expected to increase to a range of 11.61 to 11.91 euros.
The company had already raised its full-year outlook in February, citing strong demand and its massive order backlog, which increased to 105 billion euros ($115.58 billion) in the second quarter.
The raised guidance came after Siemens reported Q2 revenue increasing by 14% to 19.42 billion euros. Analysts in a company gathered consensus of forecasts had expected 18.59 billion euros.
Industrial profit in the three months to the end of March rose 47% to 2.61 billion euros, missing forecasts for 2.70 billion euros.
“Siemens continues its outstanding performance, delivering several records, including impressive margin increases and all-time highs in profit for Digital Industries and Smart Infrastructure, as well as another record in order backlog,” said Chief Executive Roland Busch in a statement.
($1 = 0.9084 euros)
(Reporting by John Revill, editing by Rachel More)
