Siemens is expecting the automation business to pick up by the middle of 2024 as customers reduce inventory.
Siemens saw overall revenue of €77.8bn in 2023, up 8%, but expects slower growth between 4 and 8% in 2024. Order intake increased by 4% to €92.3bn.
“Our forecast for the Siemens Group in the 2024 financial year is based on the assumption that geopolitical tensions will not increase any further. Under these conditions, we expect our industrial business to continue to grow profitably,” said the company.
“For the Group, we expect revenue growth in a range of 4% to 8% and a book-to-bill ratio of over 1.”
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Digital Industries, which includes the EDA business, forecasts sales revenue development on a comparable basis in a range of 0% to 3% for the 2024 financial year. This is based on the assumption that after customer inventories have been reduced, global demand in the automation business, particularly in China, will pick up again in the second half of the financial year. The profit margin is expected to be between 20% and 23%.
Smart Infrastructure expects revenue growth on a comparable basis of between 7% and 10% and an earnings margin in a range of 15% to 17% in the 2024 financial year.
Mobility intends to achieve comparable revenue growth of between 8% and 11% in fiscal year 2024. The profit margin is expected to be between 8% and 10%.
However the figures do not include the troubled Siemens Energy division.
“The 2023 financial year was a year with numerous records: In our industrial business, we achieved the highest results of all time in terms of earnings and profitability. We almost doubled our profit after taxes, reaching a historic high. I would like to thank all of our colleagues around the world for their great commitment to contributing to these excellent results. Our strategy is paying off and we continue to accelerate our customers’ digital and sustainable transformation,” said Roland Busch, CEO of Siemens AG.