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The company, considered a bellwether of industrial activity, also raised its 2010 profit outlook, saying orders were growing and production would increase in the second half of the year.
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JS: I'm saying order flow.
He said orders were "significantly larger than we thought".
Mr. Schmidt said orders would be accepted beginning this fall.
He said orders were being filled on an emergency basis.
But the company said orders were better in the second quarter than the first quarter.
Suppliers of machinery say orders are down by up to two-thirds.
The department said orders for manufactured goods decreased 1.4 percent in May.
The Commerce Department said orders placed with factories declined 1.2 percent in June.
Last quarter, he said, orders for semiconductor equipment rose 44percentt and telecommunications orders were up 11percentt.
The company said orders for telecommunications and other equipment had fallen 20percentt.
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