Siemens reported better-than-expected quarterly earnings on Thursday, driven by strong demand for electricity infrastructure and production software.
The company achieved an 11% increase in adjusted operating profit to 3.0 billion euros ($3.3 billion) for the fiscal third quarter, surpassing analysts’ forecasts of 2.84 billion euros.
Despite the earnings beat, Siemens cautioned that customer investment remains cautious due to uncertainty over borrowing costs.
The company observed a slow return of Chinese customers and distributors, though there are early signs of recovery in demand from chemical makers.
Siemens’ shares fell 0.4% in early trading, reflecting broader concerns about weak industry demand in Europe and declining technology stock performance in the U.S.
The company maintained its full-year revenue growth outlook at the lower end of its 4-8% range and anticipated varying profit margins across its business units.