German industrial large Siemens stated Thursday its quarterly earnings jumped sharply, pushed by demand for manufacturing software program in addition to the “boom” in synthetic intelligence and prospects upgrading energy grids.
Internet revenue was 1.98 billion euros ($2.2 billion) from April to June — up about 50 % from a 12 months earlier and better than analyst forecasts — on income of 18.9 billion euros.
Siemens, whose sprawling world enterprise runs from making trains and manufacturing unit tools to techniques that handle information centres, stated its software program enterprise carried out strongly, profitable a sequence of main contracts.
The electrification arm of the group additionally grew by greater than 20 %, stated CEO Roland Busch.
“We are benefiting from the boom in artificial intelligence, and the accelerated energy transition,” he informed journalists after the outcomes had been launched.
“On the one hand, many new data centres are being built, and on the other, power grids are being expanded to accommodate more renewable energy.”
The group’s “smart infrastructure” division, which incorporates the electrification enterprise, reported revenues had been up 10 % total from a 12 months earlier.
However gross sales fell in its industrial automation enterprise, which covers areas like automating factories.
Orders had been down 16 % total from the identical quarter in 2023, though that interval noticed a bumper crop of prepare orders.
The “mobility” division, which incorporates the prepare enterprise, noticed orders drop 70 %.
The Munich-based group confirmed its outlook of attaining income development of 4 to eight % over its 2024 fiscal 12 months, which runs to the top of September.
Nevertheless, it cautioned the ultimate outcome would doubtless be on the decrease finish of this vary, with Busch saying that “the economic situation in China and Europe remains difficult”.
“Recent macro indicators point to continuing challenging conditions for industrial demand,” he added.
In key market China, demand remained “muted”, Siemens stated.
The group’s shares had been down about half a proportion level on the Frankfurt Inventory Alternate following the outcomes.
Siemens had lengthy been a producer of heavy industrial tools however has lately sought to shift its focus in the direction of digital expertise and manufacturing unit automation.
