Siemens beat its earnings estimates for its second quarter thanks to 'extraordinary' growth in its digital business.
The German conglomerate posted its Q2 fiscal results on Wednesday, with revenue reaching €20.1bn - almost identical to the figure for the same period in 2017 - and orders strong at €22.3bn.
According to Siemens' Chief Financial Officer Ralf Thomas, the company has seen an 'extraordinary' growth of 42% in its digital operations in China, a rise 'unseen in the competitive landscape', reports the Financial Times.
Across its whole 'Digital Factory' division, Siemens recorded profits of €682mn, a 20% rise compared to the same period last year, while profit and profitability rose in all related businesses. In its statement, it confirmed that it will raise its outlook for basic EPS from net income to the range of €7.70 to €8.00, excluding severance charges, up from the range of €7.20 to €7.70.
"Most of our businesses, primarily our digital offerings, showed impressive performance and operationally more than offset structural challenges in fossil power generation," commented President and Chief Executive Officer Joe Kaeser in a statement. "By raising our guidance, we demonstrate our commitment to the company’s capability to master structural change and shape digital industry."
Last month Business Chief reported that Siemens is urging businesses to embrace Industry 4.0 immediately as it showcased its 'Digital Enterprise' portfolio at this year's Hannover Messe.