Siemens's sales expansion is showing signs of decline.
Siemens isn't expanding as much as anticipated in the present financial year, mainly because of a struggling automation sector. As per the CFO Ralf Thomas, the sales growth pattern is now probably heading towards a 3% increase, instead of the initial 4%.
Back in August, Siemens had predicted growth to fall within the lower boundary of their projected range of 4-8% for the 2023/24 fiscal year (ending in September). However, they are still expected to meet their projected earnings of 10.40 to 11.00 euros per share. As Thomas told the newspaper, "The earnings capacity is firmly at the level we announced."
Investors can look forward to a rising dividend, as assured by the CFO. He stated, "We'll keep up our progressive dividend policy, so the payout is likely to go up." For the 2022/23 fiscal year, Siemens disbursed 4.70 euros per share in dividends.
Siemens is expected to miss its sales forecast, primarily due to their long-standing Digital Industries division. Revenue in the automation and software sector is anticipated to decrease by around 8%, which might even increase. Siemens' business in China's factory automation and exports from countries including Germany and Italy are dealing with adversities.
According to Thomas, "The automation division is really pushing to meet its objectives. The first half of the following fiscal year will continue to be a significant challenge." It might take until February 2025 for inventory levels in China to get back to normal.
The role of Siemens' Chief Financial Officer, Ralf Thomas, includes assuring investors of a rising dividend, as he stated, "We'll keep up our progressive dividend policy, so the payout is likely to go up." Despite the struggling automation sector and Siemens potentially missing its sales forecast, Thomas remains confident, stating, "The earnings capacity is firmly at the level we announced."
