Strong demand for electrification and software propelled Siemens to earnings that surpassed expectations.

• On Thursday, Siemens, a prominent German industrial technology company, reported higher-than-anticipated quarterly earnings and maintained its forecast for the year.
• In the quarter ending June 30, industrial profit increased by 11% to reach 3 billion euros ($3.3 billion) compared to the same period last year.

On Thursday, Siemens, a prominent German industrial technology company, reported higher-than-anticipated quarterly earnings and maintained its forecast for the year.

In the quarter ending June 30, 2021, industrial profit was reported at €3 billion ($3.3 billion), representing a 11% increase from the same quarter in the previous year. This figure surpassed the analyst consensus forecast.

Siemens reported that comparable orders decreased 15% from the previous year's quarter, reaching 19.8 billion. The company noted that order volume increased significantly in its digital industries and smart infrastructure businesses, but declined sharply in the mobility business.

On Thursday, CNBC reported that Roland Busch, CEO of Siemens, stated the company's quarterly performance was "extremely robust."

At 9:30 a.m. London time on Thursday, shares were 0.65% lower and the pan-European index was trading down 1.13%.

Despite growth in electrification and industrial software businesses, the company noted that its automation business remained challenging in the third quarter.

The software business experienced "exceptionally high order growth" due to several large contract wins for licensed software, resulting in profitability growth that more than offset a decline in automation profitability, the company stated.

The company reported a year-over-year increase in profit and profitability due to higher revenue, increased capacity utilization, and ongoing productivity improvements.

According to Reuters, Siemens CEO Busch stated in a call after the earnings were released that it would not be possible to achieve the same level of gains in the software business as before.

Siemens flagged a sharp slowdown in its automation business during its previous results.

On Thursday, the business confirmed its full-year financial outlook, but stated that Siemens Group's comparable revenue growth would likely fall within the lower end of the projected 4%-8% range.

According to Busch, the projection was due to challenging market conditions, including industrial market weakness and high stock levels, which would take time to decrease.

He stated that the company possessed the appropriate portfolio and was utilizing artificial intelligence to assist customers.

We're eagerly anticipating the future, as Busch stated.