Siemens charts unprecedented success in fiscal 2023 and anticipates a shift in sales dynamics for the upcoming year.
TWC Magazine – The German industrial giant Siemens stunned the market on Thursday by revealing a robust 10% surge in revenue growth, soaring to an all-time high of €21.4 billion ($23.2 billion) for the fiscal fourth quarter, outstripping analyst predictions. Despite this impressive feat, Siemens now braces for a tempered sales trajectory in 2024.
Projected at 4-8% growth over the next 12 months, a notable deceleration from the remarkable 11% surge recorded in the 2023 fiscal year, this cautionary outlook is primarily attributed to a subdued forecast for the industrial automation division. The company anticipates challenges in its Digital Industries sector, projecting a conservative revenue development of 0% to 3% for fiscal 2024. In the latter half of the fiscal year, Siemens remains optimistic, banking on a revival in global demand, particularly in China.
However, Siemens basks in achieving record-breaking quarterly and annual results to cap off the fiscal year. Industrial profit experienced a noteworthy 7% ascent, reaching an unprecedented €3.4 billion in Q4, surpassing the company’s forecast of €3.34 billion. This propelled the full-year industrial profit to an all-time high of €11.4 billion. Net income also made history, reaching €1.9 billion for the quarter and a staggering €8.5 billion for the entire year. The free cash flow soared to an unprecedented €10 billion for the whole of the year.
In a move signaling confidence in its financial standing, Siemens proposed an increase in its dividend from €4.25 per share to €4.70 per share, a testament to the company’s robust fiscal health.
On Thursday, Siemens shares responded positively to the news, surging by 5.6% during early trade in Frankfurt.
Siemens President and CEO Roland Busch expressed his satisfaction with the stellar performance, stating, “Fiscal 2023 was a year of multiple records: In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high.” Busch credited the success to the company’s strategic focus on accelerating digital and sustainability transformations for its customers.
In an interview with CNBC, Busch highlighted Siemens’ alignment with the global push toward sustainability and the advantages derived from increased digitalization. He emphasized the company’s strength in leveraging government initiatives and subsidies, funneling money into future technologies and innovation.
Siemens stands at the forefront of a transformative era, poised to navigate the evolving business landscape while continuing to drive digital and sustainability innovations.