(Bloomberg) -- Siemens AG’s two main units reported higher-than-expected first-quarter profit, adding to evidence that Germany’s manufacturing titans have gotten a big boost from China’s economic recovery. The shares gained.
The engineer’s digital industries unit saw adjusted earnings before interest, taxes and amortization climb to 848 million euros ($1 billion) in the quarter that ended in December, beating a consensus estimate of 592 million euros, the company said late Thursday. Profit at the infrastructure division rose to 391 million euros, also ahead of expectations .
Siemens is due to report its full results on Feb. 3. The company said it will review its 2021 guidance in light of the divisions’ outperformance. In November, Siemens predicted that fallout from the coronavirus crisis would burden EBITA at the two units, with only moderate earnings growth expected.
Demand from China, which has managed to contain the pandemic and last quarter roared back to pre-pandemic growth rates, has given key support to global trade and to some of Germany’s biggest exporters.
Siemens rose as much as 6.1% in Frankfurt trading and was up 5% at 130 euros at 9:25 a.m. Analysts at Deutsche Bank AG said the “much stronger-than-expected” results could translate into Siemens beating EBITA expectations by 20% when the group figures are announced.
The company has weathered Covid-19 better than some of its automotive and industrial clients partly because it was able to keep its factories running virtually uninterrupted. It’s also had an easier ride than U.S. rival General Electric Co., which is reliant on aviation customers hit by the collapse in air travel.
Siemens’s mobility unit, a leading manufacturer of train equipment, missed market expectations with 219 million euros of adjusted earnings. The global market for train equipment and maintenance services shrank last year, with lockdowns in major economies drastically cutting passenger numbers in cities and elsewhere.
(Updates to add shares in fifth paragraph)
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
