Machinery industry Siemens achieves record profit despite sluggish growth
Siemens has posted a record profit despite sluggish growth in some areas, particularly automation. A former subsidiary also contributed to this result.
14.11.2024, 07:11
SDA
Siemens posted a record profit of 9 billion euros after tax last fiscal year, despite slow progress in some business areas. This profit is the highest in the company's history, Siemens announced. A significant contribution to this result came from a book gain of half a billion euros realized from the transfer of shares in the former subsidiary Siemens Energy to the company's pension fund.
However, the company's sales are only growing slowly. Siemens forecasts that this trend will continue in the new fiscal year, which began in October. The Group is benefiting from strong demand in the areas of electrification, mobility and industrial software, as Group CEO Roland Busch explained. However, the automation business remains a challenge.
Challenges in the automation business
The Smart Infrastructure division made the largest contribution to earnings this year, overtaking the previously leading Digital Industries division, which is struggling with a weakening automation business. Digital Industries is suffering from high inventory levels at customers and dealers, which led to a significant decline in sales and earnings.
Overall, Siemens' revenue rose by just 1 percent to 75.9 billion euros in fiscal year 2024, while order intake fell by 6 percent to 84.1 billion euros. For the new fiscal year, Siemens expects moderate revenue growth of 3 to 7 percent on a comparable basis.
Outlook for the new fiscal year
Excluding special items, profit is expected to be at a similar level to 2024. Including special effects, Siemens has already secured a profit of €2 billion. The recently completed sale of the electric motor manufacturer Innomotics will lead to a preliminary profit of this amount in the current fiscal year.
