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 per cent to €1.3 billion from €1.9bn in the same period last year, in which €800 million was accounted for by discontinued operations including Siemens Energy. On a comparable basis, orders rose by 16 per cent to a value of €19 billion in the fourth quarter, while revenues rose 10 per cent to €17 billion.

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.

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

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.

Over the entire fiscal year, the group nonetheless saw profits rise to €6.7 billion this year from €4.2bn in 2020. Annual orders grew by 21 per cent on a comparable basis to €71bn, while revenues were up on the year by 11 per cent to €62bn.

The improving economic conditions in the coming year meant Siemens expected “mid-single-digit” comparable revenue growth in the coming fiscal year.

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