(Alliance News) - Siemens Energy AG on Wednesday raised its full-year outlook after a strong second quarter saw the company return to profit.
Siemens Energy, spun off from Siemens AG in 2020, is a Munich, Germany-based company. Its product range includes gas and steam turbines and electricity grid technology.
Shares in the company jumped 10% to EUR22.07 in Frankfurt on Wednesday.
President and Chief Executive Christian Bruch said: "Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilizing the wind business."
In the second quarter to March 31, Siemens Energy swung to net income of EUR108 million from a net loss of EUR189 million a year ago. Basic earnings per share were EUR0.08 compared to LPS of EUR0.25 last year.
The improved profitability picture came as revenue rose 3.7% to EUR8.28 billion from EUR8.03 billion.
Siemens Energy highlighted "substantial and significant" growth at Grid Technologies and Transformation of Industry, respectively. This more than offset the declines at Gas Services and Siemens Gamesa.
Free cash flow pre tax was positive at EUR483 million compared with negative EUR294 million a year ago. The improvement was primarily due to strong cash conversion across all business areas and shifts in timing from Siemens Gamesa, the company said.
Orders fell 22% to EUR9.47 billion from EUR12.26 billion driven by expected decreases at Siemens Gamesa due to a sharply lower volume from large orders and Gas Services primarily due to a high basis of comparison.
Siemens Energy said due to the strong business performance in the first half-year, it was raising its outlook for the financial year.
It now expects comparable revenue growth between 10% and 12%, up from between 3% and 7% before.
It expects a profit margin before special items between negative 1% and positive 1%, previously between negative 2% and positive 1%.
Free cash flow pre tax is now expected to be up to positive EUR1.0 billion, previously around negative EUR1.0 billion.
The outlook for net income remains unchanged at up to EUR1 billion.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News
Siemens Energy boosts full-year guidance underpinned by strong demand
(Alliance News) - Siemens Energy AG on Wednesday raised its full-year outlook after a strong second quarter saw the company return to profit.
Siemens Energy, spun off from Siemens AG in 2020, is a Munich, Germany-based company. Its product range includes gas and steam turbines and electricity grid technology.
Shares in the company jumped 10% to EUR22.07 in Frankfurt on Wednesday.
President and Chief Executive Christian Bruch said: "Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilizing the wind business."
In the second quarter to March 31, Siemens Energy swung to net income of EUR108 million from a net loss of EUR189 million a year ago. Basic earnings per share were EUR0.08 compared to LPS of EUR0.25 last year.
The improved profitability picture came as revenue rose 3.7% to EUR8.28 billion from EUR8.03 billion.
Siemens Energy highlighted "substantial and significant" growth at Grid Technologies and Transformation of Industry, respectively. This more than offset the declines at Gas Services and Siemens Gamesa.
Free cash flow pre tax was positive at EUR483 million compared with negative EUR294 million a year ago. The improvement was primarily due to strong cash conversion across all business areas and shifts in timing from Siemens Gamesa, the company said.
Orders fell 22% to EUR9.47 billion from EUR12.26 billion driven by expected decreases at Siemens Gamesa due to a sharply lower volume from large orders and Gas Services primarily due to a high basis of comparison.
Siemens Energy said due to the strong business performance in the first half-year, it was raising its outlook for the financial year.
It now expects comparable revenue growth between 10% and 12%, up from between 3% and 7% before.
It expects a profit margin before special items between negative 1% and positive 1%, previously between negative 2% and positive 1%.
Free cash flow pre tax is now expected to be up to positive EUR1.0 billion, previously around negative EUR1.0 billion.
The outlook for net income remains unchanged at up to EUR1 billion.
By Jeremy Cutler, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024, Alliance News