Siemens forecasts sales growth to slow down in 2024
What's the story
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.
Details
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."
What Next?
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.