FRANKFURT (Reuters) – German engineering group Siemens announced a more cautious sales outlook for 2024 on Thursday, after reporting a better-than-expected fourth-quarter profit at its industrial division.
Siemens, maker of products used to automate factories and buildings, said it expects revenue growth of 4% to 8% over the next 12 months.
This objective marks a slowdown in the 11% growth in the German group’s turnover posted during the 2023 financial year ending at the end of September.
Siemens expects moderate performance in its industrial automation division AG, whose sales could increase by up to 3% or stagnate.
“This is based on the assumption that after customer destocking, global demand in automation activities, particularly in China, will resume in the second half of the financial year,” the group said in a statement.
Siemens’ sales rose 10 percent in the fourth quarter to 21.4 billion euros, surpassing the 20.99 billion euros forecast in a poll of the company’s analysts.
Its industrial profit also increased, by 7%, to a record level of 3.4 billion euros, above the 3.34 billion euros forecast.
(Reporting Christoph Steitz and John Revill; Dagmarah Mackos)
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