Global demand for automation products to pick up in the second half of the year
- Siemens expects slower revenue growth next year
- Global demand for automation products not expected to recover until the second half of the year
- Revenue at the digital industries division may grow up to 3% or stagnate
- Earnings per share projected at EUR10.40 to EUR11 in fiscal 2024
- Siemens’ net profit in Q4 2021 was EUR1.72 billion, down from EUR2.70 billion in the previous year
- Full-year net profit increased to EUR7.95 billion from EUR3.72 billion
- Quarterly revenue grew 4% to EUR21.39 billion
- Orders remained flat at EUR21.80 billion
- Siemens’ free cash flow exceeded EUR10 billion in the year
- Dividend to be increased to EUR4.70 per share in 2022
Siemens anticipates a slowdown in revenue growth next year, with global demand for automation products not expected to pick up again until the second half. The German industrial conglomerate on Thursday said it is targeting revenue growth of between 4% and 8% on a comparable basis, compared with 11% growth in the current year. Revenue at the digital industries division, which sells automation equipment and software to industrial customers globally, is expected to grow by up to 3% or stagnate. Earnings per share–before purchase price allocation accounting and excluding the effects of investments in Siemens Energy–are seen at between EUR10.40 and EUR11 in fiscal 2024. In the fourth quarter ended Sept. 30, Siemens’s net profit came to EUR1.72 billion, down from EUR2.70 billion in the year-earlier period. In the full year, net profit soared to EUR7.95 billion from EUR3.72 billion. Quarterly revenue grew 4% to EUR21.39 billion, while orders came in broadly flat at EUR21.80 billion. On a comparable basis, revenue and orders increased 10% and 6% in the quarter, respectively. Siemens said free cash flow exceeded EUR10 billion in the year, and that it will lift its dividend to EUR4.70 a share from EUR4.25 in 2022.
Factuality Level: 8
Factuality Justification: The article provides specific information about Siemens’ anticipated slowdown in revenue growth next year and the factors contributing to it. It includes quotes from the company and provides data on their net profit, revenue, and orders. The information appears to be based on official statements and financial reports, making it reliable and factual.
Noise Level: 6
Noise Justification: The article provides information on Siemens’ anticipated slowdown in revenue growth and the factors contributing to it. It mentions the expected pick-up in global demand for automation products in the second half of the fiscal year. The article also includes financial figures and highlights the company’s net profit and quarterly revenue. However, it lacks in-depth analysis, scientific rigor, and actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Siemens and the global automation industry
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses Siemens’ anticipation of a slowdown in revenue growth and a decrease in demand for automation products. This information is relevant to financial markets and companies in the automation industry.
Public Companies: Siemens (SIE)
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