Siemens beats earnings forecasts and says sales growth will slow in 2024

Siemens On Thursday, it reported a 10% increase in revenue growth for the fiscal fourth quarter to a record 21.4 billion euros ($23.2 billion), beating expectations, but forecasting a slowdown in 2024.

The German industrial group expects sales to grow by 4-8% over the next 12 months, down from the 11% increase recorded for the 2023 fiscal year that ended in September, primarily due to the subdued outlook for its industrial automation division.

“Digital Industries expects a similar revenue growth for FY2024 of 0% to 3%. This is based on the assumption that after inventory shedding by customers, global demand in automation businesses, especially in China, will rebound again in half “Second of the year.” “The financial year,” the group said in its earnings report.

However, the industrial powerhouse enjoyed record quarterly and full-quarter results, as the fiscal year concluded.

Industrial profits grew 7% to a record level of 3.4 billion euros in the fourth quarter, exceeding the company’s expectations of 3.34 billion euros, to reach a record level of 11.4 billion euros for this year.

Net income was €1.9 billion for the quarter, taking the full-year figure to a historic high of €8.5 billion, while free cash flow also hit a record high of €10 billion for the full year.

Siemens proposed increasing its dividend from 4.25 euros per share the previous year to 4.70 euros per share.

“Fiscal 2023 was a record-breaking year: in our industrial business, profit and profit margins reached all-time highs, and we almost doubled our net income to a historic level,” Siemens President and CEO Roland Busch said in a statement.

“Our strategy is paying off, as we continue to accelerate our clients’ digital and sustainable transformations.”