Stock Exchange :

Siemens posts profit beat but strikes gloomy tone

Key Points
  • The German conglomerate warned of an expected weakening in the global economy over the next 12 months and projecting a slowdown for its short-cycle automotive and machinery products.

Siemens on Thursday posted industrial operating profit of 2.64 billion euros ($2.92 billion) for its fourth quarter, beating analyst expectations of 2.33 billion euros.

The figure represents a 20% rise in the three months to the end of September on the back of a substantial increase in large orders.

However, the German conglomerate offered a cautious tone for 2020, warning of an expected weakening in the global economy over the next 12 months and projecting a slowdown for its short-cycle automotive and machinery products.

"The weakening of the global economy accelerated clearly during fiscal 2019. Nevertheless, we were again able to underscore Siemens' performance aspiration with a brilliant fourth quarter," Siemens CEO Joe Kaeser said in the earnings report.

"We fully achieved our fiscal-year guidance in all aspects! Our Vision 2020+ strategic concept is beginning to get traction."

Revenue for the company's fourth quarter came in at 24.5 billion euros, an 8% increase year-on-year, while orders rose 4% to 24.7 billion euros.

source: CNBC

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