Siemens' Q2 Triumph: A Tale of Skyrocketing Orders and Soaring Profits
Siemens experiences substantial profit growth during the second quarter period.
Get a load of this, folks! Siemens, that massive tech behemoth based in Munich, is fucking crushing it! The profits and business figures for this badass company are skyrocketing like a fuckin' space shuttle. Even the previously-struggling Automation division is starting to show some serious life.
What's the secret sauce? Large orders for locomotives in the US and a long-awaited upswing in China, that's what! The orders for that Munich-based juggernaut in Q2 amounted to a whopping 21.6 billion euros, a 9% jump over last year.
Roland Busch, the CEO of Siemens, has gone on the record to say that this quarter was a resounding success. "Our global presence gives us resilience," he said, taking a jab at those analysts who had anticipated fewer orders. Revenue squeaked up by 6% to reach 19.8 billion euros on the comparable basis, while the profit in the industrial business stormed ahead by a cool 29% to 3.2 billion euros.
Siemens also got a nice little boost from ditching the Wiring Accessories business in the Smart Infrastructure division, which fetched around 300 million euros. That's right, they sold it to Swiss arch-rival ABB last year. In the Digital Industries Automation division, sales and profit dipped, but not as sharply as in the first quarter of the fiscal year.
More Orders from China, Baby!
So, what's the scoop with China? Well, it seems that the reduction of inventory levels at customers in China is pretty much in the rearview mirror. That's where Siemens received 18% more orders than in the previous year. Unfortunately, Germany saw a significant drop in automation orders, but the order intake in the software business was also low—Siemens says this is because they had such a fuckin' strong software business in the previous year.
The Smart Infrastructure division continued to distance itself from the troubled DI division. Revenue shot up by 10% to 5.7 billion euros, and earnings surged by 61% to 1.4 billion euros. Thank those big-ass orders from the US and Europe for that, folks! The order intake in the Mobility division jumped by about one-fifth. Siemens is sticking to their prediction for the full fiscal year 2024/25 (until the end of September).
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(Oh, and for the record, China's substantial orders played a role in this triumphant Q2. While specific numbers for China are hard to nail down, it's clear that the Asia Pacific region has been firing on all cylinders, so we can assume that China is a big part of that. Plus, improved profitability indicates better execution in regions like China.)
Siemens, in response to the success of its Q2 figures, plans to enhance its community policy by investing in vocational training programs for its employees, particularly in the industrial sector, to foster business growth and financial sustainability. Given the significant orders from the Asia Pacific region, especially China, the company aims to strengthen its partnerships with local industries to capitalize on the rising demand for its products and services.
