Siemens annual profits up despite supply chain snags

Siemens annual profits up despite supply chain snags

FRANFURT (AFP/APP): German industrial giant Siemens reported a jump in yearly net profit on Thursday despite a fourth quarter troubled by global supply chain issues that the company predicts will improve next year.
After spinning off its energy subsidiary last year, the company had experienced “a very successful start as a focused technology company”, CEO Roland Busch said in a statement.
Between July and September, Siemens saw its net profits drop 29 percent to 1.3 billion euros ($1.5 billion) from 1.9 billion euros in the same period last year, in which 800 million euros was accounted for by discontinued operations including Siemens Energy.
On a comparable basis, orders rose by 16 percent to a value of 19 billion euros in the fourth quarter, while revenues rose 10 percent to 17 billion euros.
Siemens, which makes products ranging from trains to factory equipment, saw revenues and orders rise across its industrial businesses, led by its “digital industries” segment, which includes factory automation.
The branch successfully navigated “ongoing supply chain risks associated primarily with electronics components and raw materials”, highlighted by Siemens as a disruption to its business. Global supply bottlenecks have increased over several months, creating difficulties for manufacturers. Supply challenges and the economic headwind created by the coronavirus pandemic would “ease during fiscal 2022”, which will run from this October to September next year.

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