Siemens Reports Strong Performance Despite Factory Automation Challenges
Siemens has announced better-than-expected quarterly profits, driven by revenue growth and resilient orders amidst ongoing issues in its factory automation business.
During the three months ended December 31st, the industrial software and control systems division experienced a significant decline. Despite this, the company reported an overall 8% drop in industrial profit to €2.52 billion ($2.63 billion), surpassing analyst estimates of €2.44 billion.
Overall revenue rose 3% to €18.35 billion, beating forecasts of €18.02 billion. Orders also exceeded expectations, albeit below year-ago levels.
CEO Roland Busch expressed optimism about the company's start to fiscal year 2025, which concludes in September. Siemens' products, used for building automation and train manufacturing, are considered key indicators of the industrial economy's health.
Siemens anticipates moderate economic growth in the coming year, acknowledging geopolitical risks such as trade conflicts and global manufacturing challenges. However, the company maintained its forecast for full-year sales growth of 3% to 7%.