Siemens, the German conglomerate specializing in products for factory and building automation, reported better-than-expected industrial profits for the fourth quarter. Despite this positive outcome, Siemens is taking a more cautious approach to its sales forecast for 2024.
The company anticipates a growth rate of 4-8% in revenues over the next 12 months, signalling a slowdown compared to the robust 11% increase it achieved during the 2023 business year, concluding in September.
The moderation in growth is primarily attributed to cautious expectations within Siemens AG’s industrial automation division, where sales may witness a modest increase of up to 3% or remain stagnant.
Siemens clarified that this outlook is based on the assumption that, following customer destocking, there will be a resurgence in global demand for automation products, particularly in China, during the latter half of the fiscal year.
This strategic shift reflects Siemens’ proactive response to current market dynamics and aims to position the company for sustained success in an evolving business landscape.
