The technology group Siemens expects further growth after a record profit in the past financial year.
In the 2023/24 financial year (as of September 30), sales are expected to grow by four to eight percent on a comparable basis, the company announced on Thursday in Munich. Currency and portfolio effects are excluded. However, this would mean that growth would weaken compared to the previous year, when Siemens increased revenues by eleven percent to 77.8 billion euros. Siemens expects weaker development in the industrial automation business, especially in China. However, this is expected to pick up again in the second half of the year. Earnings are also expected to increase in 2023/24.
Siemens expects earnings per share before certain purchase price effects after takeovers to be between EUR 10.40 and EUR 11.00. In the past year, the corresponding profit increased to 9.93 euros. This does not include the stake in the energy technology group Siemens Energy. Siemens exceeded its forecasts in the last financial year.
After taxes, the people of Munich earned 8.5 billion euros, almost twice as much as in the previous year. Shareholders should receive a higher dividend of 4.70 euros per share – after the previous 4.25 euros.
IPO: Siemens wants to take Innomotics public – sale as an alternative
The technology group wants to take its Innomotics motor and large drive business public if possible. The company announced on Thursday in Munich that preparations will begin. At the same time, offers from third parties for the business would also be examined and, if necessary, these would be considered as an alternative, it said. The independence of Innomotics has now been largely completed. The new company employs 15,000 people.
Siemens wants to launch a new share buyback program
The technology group wants to start a new share buyback program. The company announced on Thursday in Munich that shares will be bought back for up to six billion euros over five years. The program is to be initiated immediately after the end of the current one. The current share buyback program is 90 percent complete, it said. Siemens has so far bought back shares for 2.7 billion euros.
Siemens shares continue to catch up – outlook is convincing
Siemens shares continued to rise according to business figures on Thursday and continued the recovery that had already started at the end of October. When trading on XETRA, they temporarily gain 5.80 percent compared to the closing price of 146.96 euros. A trader spoke of solid figures for the final quarter and a surprisingly positive outlook for the 2023/24 financial year.
At the end of October, the crisis at the former subsidiary Siemens Energy also dragged down Siemens’ shares, which initially accelerated the downward trend since mid-June. Since then they have increased by a good fifth. With the current pre-market growth, they would reach their highest level in Xetra trading since the beginning of August.
In addition to our own positive business development, the initially resolved situation at Siemens Energy and the strength of the overall market also contributed to the share price increase. Siemens Energy had recently agreed with banks and the federal government on guarantees to secure orders and made an agreement with Siemens on the sale of shares in the Indian business. According to analysts, the latter does not have a major impact on Siemens’ balance sheet.
MUNICH / FRANKFURT (dpa-AFX)
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