By
Darya Rudz
October 26th, 2023
The impressive revenue and profit report by Siemens is proof that legacy companies are seeing a return to normalcy around the world.
German multinational industrial manufacturing company Siemens AG (ETR: SIE) has posted a better-than-expected first quarter (Q1) revenue. As reported by CNBC, the quarter which ended in December saw the firm’s revenue climb 8% to 18.1 billion euros.
The company said it recorded a surge in orders over the course of the course as backlog emanating from the era of semiconductor shortage mounted. The firm said its profit came in at 2.7 billion euros ($2.90 billion), a figure that is higher than the 2.5 billion projected by analysts.
“Our revenue grew by 8%, for digital industries and smart infrastructure revenue grew by 15%, and we have a record high order backlog of 102 billion, and profitability came in strong too, so, therefore, we had the confidence to raise the guidance,” said Chief Executive Roland Busch in an interview with CNBC.
Busch acknowledged that the revenue jump is the company’s best start to a fiscal year, renewing hopes that better days are ahead. Considering its latest performance, Siemens said it is now expecting its full fiscal revenue to soar from 7% to 10%. This projection trumps the prior estimate of 6% to 9%.
While Siemens recorded an impressive leap across its business units, the forecast is expected to hinge primarily on digital industries, the company’s factory automation business. Siemens has earned a reputation in the industrial world for its heavy automation components, train building, and other heavy-duty machinery.
Its projected performance for this current fiscal year is also expected to hinge on its Smart Infrastructure unit. This is the firm’s outfit that designs products to automate and control buildings.
The company’s shares are on the bounce at the moment following the impressive performance report. SIE is up 7.27% at the time of writing to 150.24 euros.
Siemens Revenue: Return to Normalcy Around the Globe
The impressive revenue and profit report by Siemens is proof that legacy companies are seeing a return to normalcy around the world. From the United States to the United Kingdom, companies are reporting a higher-than-expected revenue jump.
There are key sectors that have benefited the most from the latest boom in the global economy. These industries include banking, oil, and now, the heavy automation industry.
As reported earlier by Coinspeaker, the top 5 oil companies in the Western world including Exxon Mobil Corp (NYSE: XOM), Chevron Corporation (NYSE: CVX), Shell PLC (LON: SHEL), TotalEnergies SE (EPA: TTE), and BP plc (NYSE: BP) raked in close to $200 billion in profit for the 2022 financial year.
This huge earning has attracted criticism from governments, regulators, and activists around the world. President Joe Biden directly called for higher taxation to be levied on these companies when giving his State of the Union Address earlier this week. Should the huge earnings remain persistent across the board, the taxation push may also extend to other industries.