Siemens overcomes supply snags to post higher profit

FRANKFURT — German industrial company Siemens ploughed ahead in the first quarter, booking an increased net profit despite the supply chain disruptions which have troubled many businesses, it said on Thursday.

The group, which makes products ranging from trains to factory equipment, made a profit of 1.8 billion euros ($2.1 billion) between September and December last year, up 20 per cent on the same period in 2020.

The company's revenues over the same period increased by 17 per cent to 16.5 billion euros, while its orders jumped 52 per cent to a value of 24.2 billion euros.

Siemens achieved the result "despite a continuing complex macroeconomic environment influenced by the coronavirus pandemic", the group said in a statement. 

Siemens had also avoided "major disruptions from increased supply chain risks", it said. 

Widespread bottlenecks -- affecting everything from raw materials like wood to key components like semiconductors -- have created a drag on industry and limited production.

"We had a very successful start into fiscal 2022," Siemens CEO Roland Busch said in a statement.

The Munich-based group's results "impressively demonstrate that we are a leader in accelerating digitalisation and sustainability," Busch said. 

Siemens, long a producer of heavy industrial equipment, has shifted its focus in recent years towards digital industries and the automation of factories.

The new strategy led Siemens to part ways with its energy subsidiary, which was introduced onto the stock market in 2020.

The group announced on Wednesday it was selling its mail and parcels business to fellow German group Koerber for 1.15 billion euros, as well as exiting its electric motors joint-venture with Valeo.

In January the group also sold its road signalling subsidiary for 950 million euros.