AFP – German industrial giant Siemens yesterday posted a record net profit in the last fiscal year, but warned that global tariff conflicts could weigh on business in the coming 12 months.
Siemens netted EUR9 billion (USD9.5 billion) in cash between October 2023 and September 2024, a five-per-cent increase on the previous year, the group said in a statement.
Across the board, revenues grew moderately to EUR75.9 billion from EUR74.9 billion in the previous year, when adjusted for changes in the group’s activities.
Orders, meanwhile, declined to EUR84.1 billion from EUR89.4 billion the previous year, Siemens said. The sprawling conglomerate had seen “strong demand” in its electrification, transportation and industrial software divisions, Siemens Chief Executive Officer Roland Busch said. Conditions in its automation business, however, remained “challenging”, Busch said.
Revenues in the area were “substantially lower” than in the previous year, with companies “still reducing elevated stock levels due to weak global demand for manufactured goods”, Siemens said.
The weakness saw revenues in Siemens’ digital industries division decline by eight per cent in a year to EUR18.5 billion. And looking ahead, the group anticipated the core business segment to struggle, saying revenues could decline by up to six per cent in the coming year.
Overall, Siemens said it expected revenue growth in the coming year of between three and seven per cent.
The group based its forecast for the coming year on the assumption of “moderate macroeconomic growth” over the coming twelve months.
The tempered optimism was down to “ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand”, Siemens said.
It was also “due in part to continuing geopolitical uncertainty including trade conflicts”, the group said.
