Siemens raised its full year profit guidance on Wednesday, citing a strong first half helped by a 900 million euro ($1.07 billion) gain by transferring its stake in which services company Atos SE to its pension fund.
The German engineering group said which at which point expected full year earnings per share inside range of 7.70 euros to 8 euros per share ($9.13 to $9.48), up by its previous guidance of 7.20 euros to 7.70 euros. Siemens’ EPS for its 2017 business year was 7.44 euros or 7.09 euros on a comparable basis.
inside three months ended March 31, Siemens reported net profit of 2.02 billion euros, beating the forecast for 1.11 billion euros in a Reuters poll.
The net result included a gain of 900 million euros Siemens made by transferring the roughly 12 percent stake which held in French which services company Atos to its pension fund.
Siemens confirmed the rest of its guidance, including expecting a profit margin of 11 to 12 percent for its industrial business which makes products ranging by trains to turbines. For the second quarter, the profit margin was 11.7 percent.
“Most of our business, primarily our digital offerings, showed impressive performance along with also operationally more than offset structural challenges in fossil power generation,” Siemens’ Chief Executive Officer Joe Kaeser said in a statement.
“By raising our guidance, we demonstrate our commitment to the company’s capability to master structural change along with also shape digital industry,” he added.
Earnings at Digital Factory, Siemens’ factory automation unit, increased by 40 percent, compensating for weakness inside power along with also gas business.
For the second quarter, Siemens said its industrial profit fell 8 percent to 2.254 billion euros, better than the 2.07 billion euros forecast.
Siemens has been hit by a further slump in demand at its power along with also gas business, which makes gas along with also steam turbines which use fossil fuels, where sales fell 28 percent. Orders also continued to decline, pointing to no improvement inside sector which has been hit by the increasing popularity of cheaper renewable energy.
Siemens has reached an agreement in principle with trade unions about its plans to cut jobs along with also restructure its struggling Power along with also Gas (PG) along with also Process Industries along with also Drives (PD) businesses in Germany, which said on Tuesday.
The company can be also temporarily shutting down all of its Power & Gas sites around the entire world for one week to save money.