Siemens Sees Slower Revenue Growth, With Automation Demand Still Recovering -- Update

By Giulia Petroni

Siemens anticipates a slowdown in revenue growth next year, with global demand for automation products not expected to pick up again until the second half.

The German industrial conglomerate on Thursday said it is targeting revenue growth of between 4% and 8% on a comparable basis, compared with 11% growth in the current year. Revenue at the digital industries division, which sells automation equipment and software to industrial customers globally, is expected to grow by up to 3% or stagnate.

"This is based on the assumption that following destocking by customers, global demand in the automation businesses, especially in China, will pick up again in the second half of the fiscal year," the company said.

Earnings per share--before purchase price allocation accounting and excluding the effects of investments in Siemens Energy--are seen at between EUR10.40 and EUR11 in fiscal 2024.

In the fourth quarter ended Sept. 30, Siemens's net profit came to EUR1.72 billion, down from EUR2.70 billion in the year-earlier period. In the full year, net profit soared to EUR7.95 billion from EUR3.72 billion.

Quarterly revenue grew 4% to EUR21.39 billion, while orders came in broadly flat at EUR21.80 billion. On a comparable basis, revenue and orders increased 10% and 6% in the quarter, respectively.

Siemens said free cash flow exceeded EUR10 billion in the year, and that it will lift its dividend to EUR4.70 a share from EUR4.25 in 2022.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

November 16, 2023 02:17 ET (07:17 GMT)

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