Siemens forecasts sales growth to slow down in 2024
Siemens has provided a more conservative sales forecast for 2024 after announcing better-than-expected Q4 industrial profits. The company predicts a 4-8% revenue growth, a deceleration from the 11% increase seen in its 2023 fiscal year. This is attributed to subdued expectations for Siemens AG's industrial automation division, where sales could grow by up to 3% or remain stagnant. The corporation foresees a resurgence in global demand for automation businesses, particularly in China, during the latter half of the fiscal year.
Q4 sales and profits beat expectations
In Q4, Siemens' sales climbed 10% to €21.4 billion. Meanwhile, industrial profit rose by 7% to a record €3.4 billion, surpassing the €3.34 billion prediction. The company's shares were projected to open 1.8% higher, with a trader citing the firm's robust outlook and performance. CEO Roland Busch stated, "Fiscal 2023 was a year of multiple records: In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high."
Demand levels returning to normal
After witnessing a post-pandemic surge when clients increased production and placed bulk pre-orders to prevent component shortages, Siemens has observed demand returning to normal levels in recent months. The firm has also been processing its extensive order backlog, which amounted to €111 billion at the end of September, up from €110 billion at the end of June. Siemens' products are utilized in automating factories and buildings, positioning the company as a significant player in the industrial automation sector.
