Siemens Q4 Profit, Orders Rise; Sees Growth Ahead; Stock Up

(RTTNews) - Shares of Siemens AG were gaining around 6 percent in the morning trading on Germany's XETRA after the conglomerate on Thursday issued positive revenue outlook for fiscal 2025, after reporting higher profit and orders in its fourth quarter.

Further, Siemens President and CEO Roland Busch reportedly announced potential cut of up to 5,000 jobs worldwide in its factory automation business, citing weak performance in the automation business at Digital Industries.

In its earnings statement, Busch said, "Starting in fiscal 2025, we will take Siemens to the next level of value creation. We will continue to invest in R&D and M&A to secure faster growth based on our technological strengths and ability to scale across industries. Our planned acquisition of Altair reinforces our leadership in industrial software and AI. Our ability to combine the real and digital worlds is unmatched."

The company said the results reflected continuing strong demand for electrification, transportation and industrial software offerings, while automation business remained challenging.

For fiscal 2025, Siemens expects basic earnings per share before purchase price allocation accounting, i.e., EPS pre PPA, in a range of 10.40 euros to 11.00 euros, excluding the gain from the sale of Innomotics.

The company noted that the preliminary gain of 2.0 billion euros after tax will be recorded in the first quarter of fiscal 2025.

In fiscal 2024, EPS pre PPA was 10.54 euros excluding a positive 0.61 euro per share from Siemens Energy Investment.

Further, the company projects comparable revenue growth in the range of 3 percent to 7 percent for the next year.

Comparable revenue grew 3 percent in fiscal 2024 to 75.9 billion euros.

The outlook reflects the assumption of moderate macroeconomic growth in fiscal 2025, due in part to continuing geopolitical uncertainty including trade conflicts. It also reflects ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand.

At the same time, infrastructure markets, particularly in electrification and mobility, remain strong, the firm said.

Digital Industries expects full-year comparable revenue to be down 6 percent to up 1 percent, with a profit margin of 15 percent to 19 percent.

Smart Infrastructure expects comparable revenue growth of 6 percent to 9 percent and a profit margin of 17 percent to 18 percent; and Mobility expects comparable revenue growth of 8 percent to 10 percent and a profit margin of 8 percent to 10 percent.

Further, the company proposed a dividend of 5.20 euros per share, higher than last year's 4.70 euros.

In its fourth quarter, net income grew to 2.1 billion euros from 1.9 billion euros a year ago.

Revenue for the quarter increased to 20.8 billion euros from 20.6 billion euros in the prior year. Revenue rose 2 percent on a comparable basis.

The results reflected growth at Smart Infrastructure, Mobility and Siemens Healthineers, which was mostly offset by a decline in the automation business at Digital Industries.

Orders grew to 22.9 billion euros from last year's 21.2 billion euros, attributable to very strong growth at Mobility and a considerable increase at Smart Infrastructure. Orders went up 10 percent on a comparable basis.

On Germany's XETRA, Siemens shares were trading at 189.88 euros, up 5.84 percent.

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