Siemens' automation division is not emerging from the trough as quickly as hoped.

The technology group therefore expects a decline in sales of up to eight percent and significantly weaker margins for its flagship Digital Industries division in the 2023/24 fiscal year (as of the end of September), as Siemens announced in Munich on Thursday. The flourishing business with construction and infrastructure technology could largely make up for this, said CEO Roland Busch. In the second quarter, the group missed analysts' sales and profit expectations. CFO Ralf Thomas had already warned of the continuing weakness at Digital Industries in March.

Earnings from the industrial business fell by two percent to 2.51 billion euros from January to March. Experts had expected Siemens to achieve an increase to 2.68 billion. On a comparable basis, sales stagnated at 19.2 billion euros, while order intake fell by twelve percent to 20.5 billion euros. The bottom line was a profit of 2.20 (3.55) billion euros, whereby Siemens had benefited last year from special income of 1.6 billion euros from the rising price of Siemens Energy shares.

The forecasts for the Group remain unchanged, confirmed CFO Thomas. Revenue is expected to increase by four to eight percent on a comparable basis in 2023/24, while order intake is expected to grow faster than revenue. Earnings per share - excluding all Siemens Energy effects - are expected to be between 10.40 and 11.00 euros.

(Report by Alexander Hübner, edited by Sabine Wollrab. If you have any questions, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and the economy) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)