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Siemens Energy AG shares surged after the company substantially raised its revenue and net income outlook for the fiscal year, citing demand for gas turbines, gas services and electricity products. The German manufacturer expects comparable revenue to grow as much as 15% this fiscal year through September, up from as much as 10% previously, the company said in a Wednesday pre-release of quarterly earnings. Net income will rise to as much as €1 billion, up from a previous break-even guidance.
Siemens Energy shares rose as much as 12.3% in early Frankfurt trading, the biggest intraday gain since November. The stock has more than tripled in value over the past year.
The company also lifted its profit margin and outlook after a strong past quarter. Revenues increased 21% to €9.96 billion ($11.
3 billion) in the three months through March, the company said, while profits before special items more than quadrupled. Also Read: Siemens India shares now trade ex-energy business; check potential listing date Demand was especially strong in two of Siemens Energy’s key divisions. Orders in its gas services division, which makes gas turbines, more than doubled.
The company also profited from surging sales of its electricity products, such as circuit breakers and transformers, with comparable revenues rising 34% in its grid technologies division. Siemens Energy flagged in February that rising electricity demand and the shift to renewable energy will help drive growth this year. Meanwhile, the company is also making progress resolving problems at its Gamesa wind-turbine unit, which had saddled the company with massive losses.
In the past quarter, the unit almost halved losses to €249 million ($283 million) excluding special items, with revenues rising 16%. Also Read: Siemens shares may surge 53% based on these key factors: Antique.
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