Siemens Raises Outlook Again on Data Center, Software Gains

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSiemens Raises Outlook Again on Data Center, Software GainsSiemens AG raised its earnings expectations for a second time this year on a surge in data center spending and higher returns from selling software to industry.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.Siemens CEO Roland Busch. Photo by Bridget Bennett /Photographer: Bridget Bennett/Bl(Bloomberg) — Siemens AG raised its earnings expectations for a second time this year on a surge in data center spending and higher returns from selling software to industry.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe manufacturer now sees earnings per share before purchase price allocation accounting of as much as €11.50 ($13.28), from as much as €11.10 previously, it said Thursday. Siemens reported revenue growth in all divisions in the fiscal third quarter, and group free cash flow jumped 42%.Profitability at its Digital Industries unit, which makes factory automation equipment and industrial software, surged 44% on growth in China and the US. The Smart Infrastructure unit continued to benefit from high demand for its switchgear and cooling products needed for data centers.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againSiemens makes everything from trains to factory software and has been expanding its automation and artificial intelligence offerings. Its latest results suggest the recovery in industrial automation continues to broaden while investments in software, AI and data centers remain powerful growth drivers.Orders from data centers tripled to around €6 billion in the first nine months of the fiscal year, prompting Siemens to raise the Smart Infrastructure unit’s annual revenue growth outlook to as much as 11%, from at best 10% previously.“The most important point is securing the demand in such a fast-growing business,” Chief Executive Officer Roland Busch said on Bloomberg Television. Siemens is investing €300 million to expand switchgear production at a facility near Frankfurt to meet demand from data-center customers.The spending spree is benefiting the entire industry. Siemens’ peer Schneider Electric SE raised its outlook last week after reporting triple-digit growth in data-center demand. ABB Ltd. and Siemens Energy AG are also profiting from the boom.Siemens shares are up around a fifth this year, making it Germany’s most valuable company with a market capitalization of some €224 billion. The improvement at Digital Industries follows several quarters in which weak industrial demand, the shift to a software subscription model and the integration of Altair and Dotmatics weighed on the business. The unit booked €35 million in integration costs in the period.Orders at the Mobility division, which makes trains and rail signaling systems, slipped 4% after a strong prior-year quarter that included several large contract wins. Revenue still rose 6%.Siemens is currently spinning off its majority stake in its former medical technology division, Siemens Healthineers AG. The company said it has now received a binding decision from the tax authorities, clearing the way for shareholders to vote on the transaction at the annual general meeting in February of next year.—With assistance from Anna Edwards.(Updates with CEO comment in sixth paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.