(CercleFinance.com) – Siemens unveiled new forecasts on Tuesday deemed disappointing for its digital transformation activities in industry, causing its stock to fall on the Frankfurt Stock Exchange.
During a conference organized by Bank of America, its financial director Ralf Thomas confirmed the objective of earnings per share (EPS) of between 10.40 and 11 euros for the current fiscal year.
But he also recognized that the decline in turnover in the ‘Digital Industries’ (DI) branch – dedicated to industrial automation and digitalization – could be more pronounced than expected this quarter.
While the German group had previously expected a decline of around 5% in the division’s activity in the second quarter, which will end at the end of March, a drop of more than 10% is now expected.
This disappointing forecast, which could call into question the branch’s annual objectives, was not eclipsed by the brighter prospects for the building and infrastructure technology business.
According to Siemens, the latter, called ‘Smart Infrastructure’ (SI), should in fact generate growth in its turnover at the top of the range of 5% to 7% initially forecast for the second quarter.
During the meeting, Ralf Thomas also indicated that the sale of Innomotics, the subsidiary dedicated to Siemens motors and generators, should be finalized during 2025.
The stock fell by more than 6% following this information, suffering the biggest drop in the DAX index, to only show a gain of around 1% since the start of the year.
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