Siemens Cuts Digital Industries Outlook on China Weakness
The German industrial giant said its group-level outlook for the year to September remains unchanged, with comparable revenue growth still expected to range from 4% to 8%
Siemens SIE 1.33%increase; green up pointing triangle cut fiscal 2024 guidance for its closely watched digital industries unit, citing a slower-than-expected recovery in its China automation operations, but raised its forecast for the smart infrastructure division.
The German industrial giant said Thursday that its group-level outlook for the year to September remains unchanged, with comparable revenue growth still expected to range from 4% to 8%.
In the group’s digital industries, comparable revenue is now projected to fall by 4% to 8% in fiscal 2024, against previous expectations for a rise of up to 3%. Siemens now forecasts profit margin for the division of 18% to 21%, down from 20% to 23% previously.
However, Siemens raised the full-year outlook for its smart infrastructure segment and now anticipates comparable revenue growth of 8% to 10%, compared with 7% to 10% previously, and profit margin of 16% to 17%, which it had previously forecast at 15% to 17%.
For the quarter to March, the company made a net profit of 2.03 billion euros ($2.21 billion), compared with EUR3.48 billion for the same period last year.
Revenue fell to EUR19.16 billion from EUR19.42 billion, with declines in its digital industries and mobility divisions offsetting a rise in smart infrastructure.
Analysts had expected Siemens to report net profit of EUR1.67 billion on revenue of EUR19.28 billion, according to consensus estimates compiled by the company.