MUNICH (dpa-AFX) - Technology group Siemens is becoming more optimistic after a strong start to the new fiscal year. Both sales and profits are expected to rise slightly more than planned in 2022/23 (as of the end of September). Siemens performed better than expected in the first fiscal quarter. The digitization businesses more than compensated for weaknesses in the train division and at medical technology subsidiary Siemens Healthineers. The share price rose by more than two percent in after-hours trading on the Tradegate trading platform.

On a comparable basis - i.e. excluding the effects of acquisitions and divestments as well as currency translation - sales are now expected to grow by seven to ten percent in 2022/23, as the Dax-listed company surprisingly announced on Wednesday evening in Munich ahead of its Annual Shareholders' Meeting on Thursday. The range has thus been increased by one percentage point at each end. Siemens raised its expectations for revenue growth and profitability for both its Digital Industries and Smart Infrastructure divisions.

This will also have a positive impact on earnings per share before certain purchase price effects. Earnings per share are now expected to range between 8.90 euros and 9.40 euros. The bar is therefore now 20 cents higher in each case. In the previous fiscal year, earnings slumped by around a third to 5.47 euros, partly due to a write-down on the investment in Siemens Energy and charges in connection with the discontinuation of the Russian business. In the run-up to the publication of the figures, analysts had been more pessimistic in their estimates for 2022/23.

Siemens also performed significantly better than expected in the first quarter. The Group benefited from a stronger than expected development in the smart infrastructure business. The digitalization division continued to score with a strong automation business. Weaknesses in the train division, which suffered from ongoing delivery delays, and at Siemens Healthineers, where the high demand for Corona rapid tests in the past has now all but disappeared, were more than offset.

Siemens increased Group sales by ten percent to almost 18.1 billion euros. Comparable growth was eight percent. Earnings from the industrial businesses increased by nine percent to just under 2.7 billion euros. Analysts had previously expected operating profit to remain at around the previous year's level. By contrast, profit after taxes fell to around 1.6 billion euros. Among other things, a higher loss at Siemens Energy had a negative impact. In addition, Siemens had benefited from a special gain in the prior-year quarter.

A small drop in orders was the seven percent decline in new orders to 22.6 billion euros. However, Siemens had benefited strongly last year from orders brought forward, especially in the digitization division, as well as major orders at Siemens Mobility. Analysts had also expected less here.

"With earnings of €2.7 billion in the Industrial Business, we have made the strongest start to a new fiscal year to date," said Group CEO Roland Busch, commenting on the figures. According to the manager, the increase in the forecast was also made in view of the record order backlog of 102 billion euros. Siemens will hold its Annual Shareholders' Meeting on Thursday./nas/zb/he