Siemens Cuts Digital Industries Outlook on China Weakness

By Adria Calatayud

Siemens cut fiscal 2024 guidance for its closely watched digital industries unit, citing a slower-than-expected recovery in its China automation operations, but raised its forecast for the smart infrastructure division.

The German industrial giant said Thursday that its group-level outlook for the year to September remains unchanged, with comparable revenue growth still expected to range from 4% to 8%.

In the group's digital industries, comparable revenue is now projected to fall by 4% to 8% in fiscal 2024, against previous expectations for a rise of up to 3%. Siemens now forecasts profit margin for the division of 18% to 21%, down from 20% to 23% previously.

However, Siemens raised the full-year outlook for its smart infrastructure segment and now anticipates comparable revenue growth of 8% to 10%, compared with 7% to 10% previously, and profit margin of 16% to 17%, which it had previously forecast at 15% to 17%.

For the quarter to March, the company made a net profit of 2.03 billion euros ($2.21 billion), compared with EUR3.48 billion for the same period last year.

Revenue fell to EUR19.16 billion from EUR19.42 billion, with declines in its digital industries and mobility divisions offsetting a rise in smart infrastructure.

Analysts had expected Siemens to report net profit of EUR1.67 billion on revenue of EUR19.28 billion, according to consensus estimates compiled by the company.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

May 16, 2024 01:30 ET (05:30 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.