The German industrial group Siemens has again raised its expectations for the full fiscal year thanks to strong order growth.
Siemens thus seems to be reaping the benefits of the major strategic reorganization of its activities, with the company focusing more on software-driven product lines with higher profit margins and less on the production of heavy machinery.
Siemens has sold many of its smaller divisions and spun off companies like gas turbine maker Siemens Energy and medical device maker Siemens Healthineers.
As a result, the company saw its turnover in the first three months of this year, the second quarter for Siemens, which has a broken financial year, rising by 15 percent to 19.4 billion euros. Net profit rose to 3.5 billion euros. Both turnover and profit were higher than experts had expected.
For the current financial year, Siemens expects a 9 to 11 percent turnover growth. Previously, growth was expected to be between 7 and 10 percent. However, the company still has a record amount of 105 billion euros in orders on the shelf. This is mainly due to a record number of orders for the part that makes trains.
After a strong increase in demand during the fiscal second quarter, Siemens expects orders to normalize in the second half of the year.