* Company seeing supply tensions for steel, plastics,
* CEO says China now operating above pre-pandemic levels
* Company beats forecasts for profit, revenue, order
* Recovery underway in automotive, machine building,
chemicals and pharma
ZURICH, May 7 (Reuters) - Siemens increased its
full year profit and sales outlook for the second time this year
on Friday but warned about tightening supply chains as the
post-pandemic recovery accelerates.
The German industrial group became the latest company to
report a strengthening upturn, saying it was seeing strong
momentum in the automotive and machine building sectors and for
Industrial output in China was now above pre-pandemic
levels, while the recovery in Europe and the United States was
"progressing at a faster pace," Chief Executive Roland Busch
In China the trains to factory automation maker reported a
44% increase in revenue during its second quarter. The recovery
was broad-based Busch said, with sales in Germany also rising
"The industrial recovery has continued and was clearly
visible in ...automotive, machine building, electronics,
chemicals and pharma," Busch told reporters.
But Busch, presenting his first results after taking over as
CEO from Joe Kaeser earlier this year, said Siemens was also
seeing "tensions" in its supply chain.
Siemens was seeing shortages in steel, plastics and freight
capacity, while it was working hard to reduce risks from
A pandemic-led surge of consumer electronics sales,
stockpiling in China and supply problems have caused a global
shortage in semiconductor chips that has squeezed capacity and
driven up costs of even the cheapest components.
"As a result, in individual cases, we may face production
constraints and prolonged delivery lead times to customers in
the months ahead," Busch said.
Like other industrial companies such as Switzerland's ABB
and France's Schneider Electric Siemens has
been seeing increasing orders as customers ramp up their
production and rebuild their
The upturn helped Siemens beat forecasts for revenue,
orders, and industrial profit during the three months to the end
of March, and raise its full year guidance.
Siemens now expects comparable revenue to rise by 9 to 11%
for the full year, up from the previous view of mid to high
single digit growth.
Full year net profit meanwhile is now expected to be in the
range of 5.7 billion to 6.2 billion euros range, above the
previous expectation of net income of 5.0 to 5.5 billion euros.
During its second quarter, Siemens reported industrial
operating profit of 2.09 billion euros ($2.52 billion), slightly
ahead of the 2.015 billion euros forecast by analysts in a
company gathered consensus.
Group revenue rose 8% to 14.67 billion euros, beating
forecasts for 14.13 billion euros. Net profit rose to 2.39
billion euros, boosted by a 900 million euro gain from the sale
of the mechanical and electrical drive systems business Flender.
($1 = 0.8288 euros)
(Reporting by John Revill, editing by Emma Thomasson and Keith