Siemens has today reported weaker-than-expected second quarter earnings, although future orders increased despite the German engineering group highlighting a "very demanding" geopolitical environment.
The trains to industrial software maker said its sales in the three months to the end of March were flat at €19.76 billion, missing forecasts for €20.14 billion in a company-gathered consensus of analysts.
Industrial profit fell 8% to €2.97 billion, missing forecasts for €3.046 billion, after the company booked a €300m gain from selling its wiring business last year, which caused also a decline in profit margins.
Net profit fell to €2.24 billion, beating forecasts for €2.13 billion, while orders rose by 11%.
The results of Siemens, a key supplier to industry and infrastructure, are seen as giving an insight into the health of the broader global economy.
"We delivered a successful second quarter despite the geopolitical environment, which remains very demanding," said chief executive Roland Busch.
During the quarter the company's orders increased ahead of expectations, rising by 11%, due to strong increases at its three main businesses of factory automation, building infrastructure and mobility.
The company said it was seeing an improving environment in the electronics and semiconductors sectors, along with demand from industrial building users, data centres and utilities.
Siemens said it still expects comparable revenue growth in the range of 6% to 8% and to take in more orders than it delivers, with a book-to-bill ratio above 1 for its 2026 fiscal year, which runs to the end of September.
