Siemens shares drop as CFO says China difficulties continue
By Steve Goldstein
CFO notes stagnant demand in Germany and Italy
Shares of Siemens AG slumped Tuesday as the company's chief financial officer said it's still struggling in China.
Speaking in London at a Bank of America conference, CFO Ralf Thomas reiterated earnings guidance for the year but said the German technology conglomerate is expecting a decline in orders in the low double-digit percentage for its digital-industries segment.
Orders in that segment slumped 31% in Siemens's fiscal first quarter.
Siemens shares (XE:SIE) skidded 5%.
"March was a bit better than February, to be honest, but this will be too late to completely safeguard the quarter," Thomas said.
He said new stimulus in China will help the company but that orders are slower than originally expected.
He also referred to stagnant demand in Germany and Italy, while highlighting strength in software. He said the unit will meet its margin guidance for the year, due to "contingencies" kicking in, though he said that segment might not reach its revenue target of 0% to 3% growth.
-Steve Goldstein
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03-19-24 0948ET
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