Siemens Reports 10% Rise in Revenue for Q4, Expects Slowdown in 2024
German multinational conglomerate, Siemens, has announced a 10% increase in revenue growth for its fiscal fourth quarter, reaching an all-time high of 21.4 billion euros ($23.2 billion). The company’s performance has exceeded expectations; however, it has expressed concerns about a potential slowdown in the coming year.
Siemens anticipates a sales growth rate of 4-8% over the next 12 months, a considerable decline from the 11% increase achieved in the previous fiscal year. The muted outlook is primarily attributed to a weaker demand forecast for its industrial automation division, especially in China, where the company faces challenges due to a sluggish market.
Despite the cautious future forecast, Siemens declared remarkable quarterly and full-year results. The company recorded a 7% growth in industrial profit, amounting to a record 3.4 billion euros in the fourth quarter alone. The total profit for the year reached an impressive 11.4 billion euros.
Furthermore, Siemens reported a net income of 1.9 billion euros for the quarter, contributing to a full-year figure of 8.5 billion euros. The conglomerate also achieved a record-breaking free cash flow of 10 billion euros for the entire year.
To reward its shareholders, Siemens plans to increase its dividend from 4.25 euros per share to 4.70 euros per share. This move showcases the company’s commitment to delivering returns to its stakeholders.
Siemens’ outstanding financial performance has also positively impacted its stock market performance. The company’s shares experienced a significant surge of 5.6% during early trade on the Frankfurt Stock Exchange.
Siemens President and CEO, Roland Busch, attributes the company’s success to its strategic initiatives and its focus on digital and sustainability transformations. He emphasized that Siemens has effectively capitalized on subsidies and government acts related to sustainability and innovation, subsequently driving growth and profitability.
However, as Siemens prepares for a potential slowdown, it remains determined to navigate the challenges by leveraging its exceptional expertise and global presence. The company aims to sustain its market leadership by adapting to changing market dynamics and capitalizing on emerging opportunities in the digital and sustainable sectors.
Siemens is confident in its ability to maintain profitability and continue driving innovation, even in the face of potential headwinds. With a proven track record of success and a strategic approach to addressing market challenges, Siemens remains hopeful in overcoming any obstacles that may arise in the near future.
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