Siemens raises mid-term guidance after seeing booming demand in fourth quarter

Siemens Sees Record Fourth-Quarter Profits, Lifts Growth Guidance

Siemens Reports Strong Financial Results and Strategic Updates

By John Revill

Fourth-Quarter Financial Performance

ZURICH, Nov 12 (Reuters) - Siemens on Thursday reported better-than-expected profit in its fourth quarter and lifted its mid-term growth outlook, as the German engineering group continued to see strong demand from data centres used to power AI.

The company, whose products range from trains to electrical gear for factories, buildings and data centres, said industrial profit jumped 22% to €3.89 billion ($4.31 billion) for the three months to the end of September.

The figure, the highest ever posted by Siemens, beat forecasts for €3.71 billion in a company gathered consensus of analysts.

Revenue and Orders Growth

Revenues meanwhile rose 11% to €23.68 billion, ahead of forecasts for €23.39 billion while orders surged 58% to an all-time high to €34.77 billion.

The increase was fuelled by big business wins at Siemens' mobility train making business, and its Smart Infrastructure operation which supplies data centres.

Updated Growth Guidance

As a result Siemens raised its mid-term guidance, saying it expected comparative annual revenue growth guidance of 7-11%, up from 6-9% previously.

Siemens Healthineers Stake Reduction

Siemens also gave details on its plans to reduce its stake in Siemens Healthineers, saying it planned to distribute one share in the medical equipment maker it floated in 2018 for every two Siemens shares they hold, confirming a Reuters story on Wednesday.

Under the plan, Siemens would transfer 34.1% of its stake to shareholders, taking its holding down to around 33%. In the mid-term, Siemens plans to sell down its stake to below 20% and hold Siemens Healthineers as a financial investment.

Additional Information

($1 = 0.9027 euros)

(Reporting by John RevillEditing by Linda Pasquini)