Siemens beats estimates as demand for electrification, software program soars

German industrial know-how big Siemens on Thursday posted better-than-expected quarterly working revenue and confirmed its full-year outlook.

Industrial revenue got here in at 3 billion euros ($3.3 billion) within the quarter to the top of June, 11% larger than in the identical quarter a yr in the past. The determine was additionally above the company-complied analyst consensus.

Shares had been 0.76% decrease at 8:27 a.m. London time on Thursday. The pan-European Stoxx 600 index was buying and selling down 1.04%.

Siemens attributed its progress within the third quarter to sturdy demand in its electrification and industrial software program companies, however famous the automation enterprise remained “difficult.”

There was an “exceptionally excessive order progress within the software program enterprise pushed by a variety of giant contract wins for licensed software program,” the corporate stated, with profitability progress greater than offsetting a revenue decline in automation.

“Sensible Infrastructure continued its broad-based enhance in revenue and profitability year-over-year on larger income, elevated capability utilization and ongoing productiveness enhancements,” the corporate added.

Siemens flagged a pointy slowdown in its automation enterprise throughout its earlier outcomes.

The enterprise confirmed its outlook for the complete monetary yr, however famous that comparable income progress for the Siemens Group was anticipated to come back in on the decrease finish of the projected 4%-8% vary.