The economic slowdown in China will keep Siemens busy for some time. It could take a little longer before the technology group’s customers can reduce their increased inventories in the automation division, said CEO Roland Busch in a telephone conference on Thursday. However, the low in demand has been overcome and it has already increased again compared to the previous quarter. “We expect this trend to continue in the coming quarters,” he said.
Siemens delivered another strong quarter and continued its profitable growth, said the CEO. In the first quarter of the 2023/24 financial year from October to December, sales increased by six percent to 18.4 billion euros on a comparable basis. Contrary to analysts’ expectations, incoming orders increased by two percent to 22.3 billion euros. At 2.55 (previous year: 1.64) billion euros, the net profit was well above the experts’ forecasts.
Siemens also owed the jump in profits to special income of 479 million euros as a result of the transfer of a package of Siemens Energy shares to its own pension fund. After Siemens reduced its share in the former energy technology subsidiary from 25 to 17 percent shortly before the turn of the year, its losses and profits will no longer be recorded proportionately in the profit and loss statement. The upheavals there, especially in the wind power business, had repeatedly distorted Siemens’ figures.