German industrial giant Siemens on Thursday reported an increase in annual net profit despite a fourth quarter troubled by global supply chain issues which the company says will improve next year.
After the split of its energy subsidiary last year, the company has had “a very successful start as a specialist technology company,” CEO Roland Busch said in a statement.
Between July and September, Siemens saw its net profits fall 29% to 1.3 billion euros, from 1.9 billion euros in the same period last year, of which 800 million euros were due to discontinued operations, including Siemens Energy. On a comparable basis, orders increased 16% to a value of 19 billion euros in the fourth quarter, while revenue increased 10% to 17 billion euros.
Siemens, which manufactures products ranging from trains to factory equipment, has seen its sales and orders increase in its industrial activities, led by its “digital industries” segment, which includes factory automation. The branch successfully overcame the “continuing supply chain risks associated primarily with electronic components and raw materials,” highlighted by Siemens as a business disruption.
Siemens, which manufactures products ranging from trains to factory equipment, saw its sales and orders increase in its industrial activities, leading its “digital industries” segment, which includes factory automation.
Global supply bottlenecks have increased for several months, creating difficulties for manufacturers. The supply problems and economic headwinds created by the coronavirus pandemic “are said to ease in fiscal year 2022,” which will run from October to September next year.
Over the full year, the group nonetheless recorded an increase in profits to 6.7 billion euros this year against 4.2 billion euros in 2020. Annual orders increased by 21% on a baseline basis. comparable to 71 billion euros, while turnover was up 11 percent year-on-year. hundred to 62 billion euros.
Improving economic conditions over the coming year meant that Siemens expected “single digit” comparable store sales growth in the coming year.
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