Siemens AG raised its outlook for a second time this fiscal year after revenue and orders jumped, with the company’s main businesses pairing industrial products with digital solutions driving the result.
The German company now sees comparable revenue growth of 9 to 11 percent for the year, up from 7 to 10 percent, driving a rise in expected earnings per share, Siemens said yesterday.
After a surge in demand during the fiscal second quarter, Siemens said that orders are set to normalize during the second half of this year.
Photo: AP
The company said that its order backlog rose again during the quarter to an all-time high of 105 billion euros (US$113.8 billion), following a record intake in the mobility segment, which makes trains.
“We are sitting on a record high order backlog, which gives us very good visibility on fiscal 2023 and into 2024,” Siemens CEO Roland Busch said in an interview with Bloomberg Television. “We see a normalization of order intake, which is good as we want to go back to better delivery times.”
For the second half of the fiscal year, Siemens expects revenue of 30 billion euros from its order bank alone.
At Siemens’ main divisions, digital industries and smart infrastructure, the picture was more mixed. While profit surged, orders at the unit making factory products and related digital services fell 10 percent. The company still raised its profit margin outlook for digital industries to as much as 23.5 percent, up from as much as 22 percent.
At smart infrastructure, with products helping buildings reduce their carbon footprint, orders rose 9 percent, and Siemens also boosted expectations for revenue and returns.
“Think about the transformation we are in with regards to climate change,” Busch said. “We have to drive up efficiency and get our energy consumption down — we believe we are sitting on a supercycle with a perfect portfolio serving this wave.”
Siemens is reaping the results of a major strategic reset of its business, shedding heavy-duty equipment in favor of software-driven product lines with higher profitability levels.
During the fiscal second quarter, comparable revenue rose 15 percent to 19.4 billion euros, beating analyst estimates of 18.7 billion euros. Net income rose to 3.48 billion euros, above analyst estimates of 3.1 billion euros.
Siemens’ bottom line profited from a 1.59 billion euros accounting gain related to the partial impairment reversal on its stake in Siemens Energy.
RUN IT BACK: A succesful first project working with hyperscalers to design chips encouraged MediaTek to start a second project, aiming to hit stride in 2028 MediaTek Inc (聯發科), the world’s biggest smartphone chip supplier, yesterday said it is engaging a second hyperscaler to help design artificial intelligence (AI) accelerators used in data centers following a similar project expected to generate revenue streams soon. The first AI accelerator project is to bring in US$1 billion revenue next year and several billion US dollars more in 2027, MediaTek chief executive officer Rick Tsai (蔡力行) told a virtual investor conference yesterday. The second AI accelerator project is expected to contribute to revenue beginning in 2028, Tsai said. MediaTek yesterday raised its revenue forecast for the global AI accelerator used
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) has secured three construction permits for its plan to build a state-of-the-art A14 wafer fab in Taichung, and is likely to start construction soon, the Central Taiwan Science Park Bureau said yesterday. Speaking with CNA, Wang Chun-chieh (王俊傑), deputy director general of the science park bureau, said the world’s largest contract chipmaker has received three construction permits — one to build a fab to roll out sophisticated chips, another to build a central utility plant to provide water and electricity for the facility and the other to build three office buildings. With the three permits, TSMC
The DBS Foundation yesterday announced the launch of two flagship programs, “Silver Motion” and “Happier Caregiver, Healthier Seniors,” in partnership with CCILU Ltd, Hondao Senior Citizens’ Welfare Foundation and the Garden of Hope Foundation to help Taiwan face the challenges of a rapidly aging population. The foundation said it would invest S$4.91 million (US$3.8 million) over three years to foster inclusion and resilience in an aging society. “Aging may bring challenges, but it also brings opportunities. With many Asian markets rapidly becoming super-aged, the DBS Foundation is working with a regional ecosystem of like-minded partners across the private, public and people sectors
BREAKTHROUGH TECH: Powertech expects its fan-out PLP system to become mainstream, saying it can offer three-times greater production throughput Chip packaging service provider Powertech Technology Inc (力成科技) plans to more than double its capital expenditures next year to more than NT$40 billion (US$1.31 billion) as demand for its new panel-level packaging (PLP) technology, primarily used in chips for artificial intelligence (AI) applications, has greatly exceeded what it can supply. A significant portion of the budget, about US$1 billion, would be earmarked for fan-out PLP technology, Powertech told investors yesterday. Its heavy investment in fan-out PLP technology over the past 10 years is expected to bear fruit in 2027 after the technology enters volume production, it said, adding that the tech would
RSS