Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Siemens misses profit forecast as industrial business struggles

Siemens misses profit forecast as industrial business struggles

By John Revill

ZURICH (Reuters) – Siemens reported a drop in second-quarter earnings at its industrial business, the German engineering group said on Thursday, after a slowdown at its flagship factory automation division.

The trains to industrial software maker said industrial profit fell 2% to 2.51 billion euros ($2.73 billion) in the three months to the end of March. That missed an average analyst forecast for 2.68 billion euros in a company-gathered consensus.

Sales fell 1% to 19.16 billion euros, below the 19.28 billion euros expected, while net profit fell to 2.19 billion euros.

Digital Industries – the company’s factory software and automation division – struggled with lower orders, sales and profit during the period, the company said.

In contrast, Siemens’s buildings and transport division both posted increases in revenues.

“Siemens proved its resilience with strong revenue performance in Smart Infrastructure, Mobility and industrial software; this nearly offset currently muted demand in Digital Industries’ automation business,” Chief Executive Roland Busch said in a statement.

Siemens, which warned in March that revenues at digital industries would be lower, said the market environment had been “challenging.”

Digital Industries’ orders fell 14% during the quarter while sales were 13% down, as customers preferred to run through their existing stocks of industrial controllers, rather than buying new ones.

China was flagged as being particularly weak, with lower orders and revenues, while Europe also struggled.

Profit at the division fell sharply as Siemens sold fewer of its higher-margin products, and utilised its own factories less.

Siemens said it now expected the destocking trend to continue into the second half of 2024, and reduced its sales outlook for digital industries.

Still, the company confirmed its outlook for annual sales at group level to increase by 4%-8%, helped by a slightly stronger growth at its Smart Infrastructure business.

($1 = 0.9188 euros)


(Reporting by John Revill, editing by Kirsti Knolle and Subhranshu Sahu)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts