German industrial giant Siemens on Thursday raised its outlook for the second time this year after a strong quarter boosted by spending on artificial intelligence. Along with other industrial firms such as France's Schneider Electric and Switzerland's ABB, Siemens -- which makes electrical gear -- has benefitted from demand for data centers that provide the computing power for AI. Siemens now expects earnings per share, a measure of underlying profitability, of between 11.20 and 11.50 euros for the year ($12.93 and $13.28), up from a range of 10.70 to 11.10 euros guided for in February. "We delivered another very successful quarter," Siemens CEO Roland Busch said. "Our technological leadership in all businesses, clear focus on industrial AI, and strong positioning in attractive markets are driving our profitable growth." Net profit for the three months to end-June rose 15 percent to 2.6 billion euros, AFP quoted Siemens as saying, while sales rose eight percent to 20.8 billion euros. Earnings growth was concentrated at Siemens' Smart Infrastructure business, which supplies electrical equipment for data centers and other industrial customers, as well as the Digital Industries division, which focuses on software to automate processes. Order intake -- an indicator of future sales -- meanwhile posted a record rise of 27.9 billion euros, up 14 percent on the same period last year, leaving Siemens with a backlog of 132 billion euros' worth of work. Orders jumped 42 percent at the AI-adjacent Smart Infrastructure division which makes much of the electrical equipment needed for data centers. Tracing its origins back to a telegraph company established in 1847, Siemens today makes trains and industrial software, as well as electrical equipment and medical and industrial machinery.
