Siemens Charts Prudent Course: In a recent announcement, Siemens, the renowned German industrial conglomerate, provided a more measured sales outlook for 2024 despite reporting a fourth-quarter industrial profit that exceeded expectations. The company, which is known for its products used in factory and building automation, anticipates a 4-8% growth in revenue over the next 12 months. This forecast represents a slowdown compared to the robust 11% revenue increase that Siemens achieved in its 2023 business year, concluding at the end of September.
The moderation in growth expectations is particularly noticeable in Siemens AG’s industrial automation division, where sales are projected to either show modest growth or stagnate. The company attributes this caution to the assumption that, following a period of destocking by customers, global demand in the automation sectorespecially in Chinawill experience a resurgence in the second half of the fiscal year.
During the fourth quarter, Siemens demonstrated strong financial performance. Sales increased by 10% to reach 21.4 billion ($23.19 billion), surpassing the 20.99 billion forecast in an analyst poll conducted by the company. Moreover, industrial profit grew by 7%, reaching a record level of 3.4 billion, higher than the predicted 3.34 billion.
Also Read: German Government Backs Siemens Energy with 8 Billion Guarantees Amidst Fulfillment Imperative
Siemens’ shares indicated a positive opening, with a 1.8% increase, reflecting market confidence in the company’s solid outlook and financial results. CEO Roland Busch commented on the past fiscal year, calling it a period of multiple records for Siemens. He highlighted achievements such as the highest levels ever recorded in profit and profit margin within the industrial business, along with nearly doubling net income to a historic high.
The company’s fiscal year 2023 was marked by strong demand levels returning to normalcy in recent months. Siemens experienced a notable post-pandemic surge as customers increased production and engaged in bulk pre-orders to preempt shortages of essential components. Siemens has also been actively managing its substantial order book, which stood at 111 billion at the end of September, up from 110 billion at the end of June.
Siemens is hopeful despite 2024’s cautious sales outlook. Siemens’ strategic response to industrial automation difficulties and reliance on a global demand rebound, especially in critical countries like China, demonstrate its adaptability and resilience in the present business landscape. Siemens’ market position, financial performance, growth predictions, and outlook are covered in the article.
Our Reader’s Queries
What is the standardization guide for Siemens?
Discover how to modularize your machines and systems with the standardization guide. This valuable resource provides recommendations and hints for structured and standardized programming of your automation solutions. One crucial aspect of creating a standard is defining the interface of modules during development and construction. With this guide, you can streamline your processes and ensure consistency in your automation solutions.
What is CFC in TIA Portal?
Siemens’ TIA Portal environment just got a whole lot easier with CFC, or Control Flow Chart. This graphical programming language simplifies control logic design by using interconnected function blocks to visually represent the control flow. Think of it like electronic or logic-based diagrams, but even more powerful.
What is Siemens SFC?
PCS7 utilizes Sequential Function Charts (SFC) to implement sequence controls. SFCs offer efficient operating mode management, high controllability with multiple switching modes, and extensive parameterization through various sequence options. This allows for a seamless and customizable control system.
What language is used in Siemens PLC?
Siemens PLC programming languages like LAD, FBD, STL, and SCL are well-known to us. Each language has its own unique benefits. SCL, in particular, is a powerful language that is ideal for handling complex mathematical operations, data manipulation with arrays, and string processing. Its versatility makes it an excellent choice for a wide range of programming needs.