Siemens, the German industrial conglomerate, has expressed anticipation of a slowdown in revenue growth next year. Global demand for automation products is not expected to recover until the second half of the fiscal year.
The company has set a target for revenue growth between 4% and 8% on a comparable basis for 2022, a significant decrease compared to the 11% growth experienced in the current year. The digital industries division, responsible for selling automation equipment and software to industrial customers worldwide, is expected to achieve a growth rate of up to 3% or remain stagnant.
Siemens stated that the assumption for this outlook is based on the expectation of renewed demand in the automation businesses, particularly in China, after customers complete destocking activities in the first half of the fiscal year.
For fiscal year 2024, earnings per share (before purchase price allocation accounting and excluding effects of investments in Siemens Energy) are projected to be between EUR10.40 and EUR11.
In the fourth quarter ended September 30, Siemens reported a net profit of EUR1.72 billion, down from EUR2.70 billion in the same period last year. However, the full-year net profit experienced substantial growth, reaching EUR7.95 billion compared to EUR3.72 billion previously.
Quarterly revenue increased by 4% to EUR21.39 billion, while orders remained relatively stable at EUR21.80 billion. When considering comparable figures, revenue and orders increased by 10% and 6% respectively during the quarter.
Siemens also announced that its free cash flow exceeded EUR10 billion for the year and that it plans to raise its dividend from EUR4.25 to EUR4.70 per share in 2022.