Siemens records decline in profits amid slowing digital industry
Date
5/16/2024 5:54:11 AM
(MENAFN) In an announcement made on Thursday, Siemens, the German multinational company, revealed a decline in profits for the second quarter of its fiscal year, particularly within its digital industry segment. This downturn was attributed to a slowdown in the primary sector of factory automation.
The company, known for its production of trains and industrial operating systems, disclosed that industrial profits experienced a 2 percent decrease, amounting to 2.51 billion euros (USD2.73 billion) during the three-month period ending in March. This figure fell below the average profit projection of 2.68 billion euros as indicated by analysts surveyed by the company. Similarly, sales figures also dipped by 1 percent to 19.16 billion euros, falling short of the expected 19.28 billion euros, while net profit saw a decline to 2.19 billion euros.
Siemens reported that its Digital Industries segment, encompassing factory software and automation systems, faced challenges with decreased orders, sales, and profits during this timeframe. Conversely, the company's Buildings and Transportation sector saw an uptick in revenues.
CEO Roland Busch acknowledged the company's resilience amidst these challenges, citing strong revenue performance in smart infrastructure, transportation, and industrial software sectors. He highlighted that this nearly offset the subdued demand experienced in the digital industrial automation business. Siemens had previously cautioned in March about an anticipated decline in revenues from digital industries, attributing it to a "difficult" market environment.
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