Siemens increases guidance after China recovery helps Q1 beat forecasts

ZURICH, Feb 3 (Reuters) - Siemens raised its 2021 guidance on Wednesday after the German engineering company beat expectations during its fiscal first quarter citing a faster than anticipated recovery from the COVID-19 downturn in China and Germany.

The trains to industrial software company said it now expected growth in the mid to high single digit percentage range in the 12 months to the end of September, up from its previous view for moderate growth - equivalent to 3-5% - it outlined in November.

The revision, in the last results under longstanding Chief Executive Joe Kaeser, came after the company beat expectations for orders, revenue and industrial profit in the three months to Dec. 31.

The results were boosted by significant growth in China and a recovery in the factory automation sector, Siemens said.

The Munich-based company posted adjusted industrial profit rising 39% to 2.13 billion euros ($2.56 billion), beating forecasts for 1.67 billion euros in a company-gathered consensus of analysts’ forecasts.

First-quarter orders rose 11% to 15.94 billion euros, beating forecasts of 13.90 billion euros while revenue rose to 14.07 billion euros, beating the 12.73 billion euros expected.

“Our team has delivered an outstanding performance in a rather complex environment,” said Kaeser, who steps down on Wednesday after leading Siemens since August 2013.

“I am grateful to be able to hand over such a strong enterprise to the next generation of management,” added the 63-year-old, who will be replaced by deputy CEO Roland Busch.

Siemens had already pre-announced preliminary figures for its first quarter, showing how its digital industries and smart infrastructure had increased sales and beaten profit expectations.

Mobility, Siemens’s rail and signalling business, slightly missed forecasts but reported a big increase in orders.

$1 = 0.8304 euros Reporting by John Revill; editing by Thomas Seythal