February 11, 2022: -Siemens reported a better-than-expected industrial profit on Thursday as the German technology group said it saw “extraordinary” order intake from its customers.

Orders increased 52% to 24.21 billion euros ($27.66 billion), well ahead of expectations, the maker of trains and factory software said, as businesses stocked up on equipment and demand surged after the pandemic slowdown.

Siemens has an order backlog of 93 billion euros, its high level.

Industrial profit increased 12% to 2.46 billion euros in the three months to the end of December that beating analyst forecasts for 2.27 billion euros.

During the quarter, the first of Siemens’ 2022 financial year, revenue rose 17% to 16.50 billion euros, beating forecasts for 15.95 billion euros. Net profit for the company increased 20% to 1.8 billion euros.

“We had a very successful start into fiscal 2022,” said Chief Executive Roland Busch in a statement. “All our businesses continued their high-value growth.”

As one of the huge capital goods manufacturers supplying equipment to factories, Siemens results indicate the broader economy’s health.

The industry has been hampered in its post-pandemic upturn by a shortage of components, particularly semiconductor chips, and bunged up logistic chains, which has delayed the production of cars, computers, and other products.

Siemens said it saw increased growth opportunities in many key markets and avoided major disruptions from improved supply chain risks associated with electronics components, raw materials, and logistics.

Siemens’s jump in orders was led by the company’s factory automation business, where orders increased by 73% with growth in all businesses and regions as customers stocked up on drives and controllers.

Revenue grew in all businesses, including bumper demand from American companies wanting electronic design automation software used to make integrated circuits and printed circuit boards.