Siemens shares fall on earnings concerns despite sales outlook hike
A sign with the logo of Siemens company is on display outside its office in Moscow, Russia, May 12, 2022. REUTERS/Evgenia Novozhenina
ZURICH :Siemens' shares fell almost 6 per cent on Thursday as a hike in its medium-term sales growth forecast failed to allay investors amid profit-taking and disappointment about next year's profit outlook.
The company, which on Wednesday said it plans to eventually cut its stake in Siemens Healthineers to 20 per cent, said it expects its sales to rise by 6-8 per cent next year and 6-9 per cent in the mid term.
Both figures would mark an acceleration from the 5 per cent revenue growth rate Siemens reported on Thursday for its financial year to the end of September.
But its stock was down 5.8 per cent at 1235 GMT, with one trader pointing to profit taking after a recent strong run as well as disappointment about its earnings outlook for the next financial year.
SALES MEET FORECASTS, INDUSTRIAL PROFIT FALLS SHORT
In the fourth quarter of its 2025 fiscal year, Siemens sales rose 6 per cent on a comparable basis to 21.43 billion euros ($24.99 billion), in line with forecasts.
Industrial profit rose 2 per cent to 3.19 billion euros ($3.72 billion), short of forecasts for 3.32 billion euros in a company-gathered consensus.
Net profit of 1.84 billion euros was 342 million euros short of forecasts.
Deutsche Bank described the results as "mixed" adding Siemens' earnings guidance of 10.40 to 11.00 euros per share in the 2026 financial year was 7 per cent below consensus expectations.
CEO REJECTS CONCERNS NEW TARGET IS TOO CONSERVATIVE
Siemens Chief Executive Roland Busch rejected analyst concerns that the mid-term 6-9 per cent target, which excludes the impact of takeovers and Healthineers, was too conservative.
"I disagree that a 6-9 per cent target rate going forward is a weak target. I would consider it to be a very strong target," he told reporters and analysts.
For Siemens, the growth would be driven by strong demand in rail, aerospace and defence, and data centres and artificial intelligence, he said. Semiconductors and life sciences would also likely increase sales over the next five years, he added.
Siemens would continue to look for acquisitions in software, companies with connected hardware devices, as well as artificial intelligence firms, Busch said, although takeovers were not included in the new target.
"We are in a good place because we are offering what the world needs more and more of," Busch said told reporters and analysts.
Busch said the reduction of Siemens holding in Healthineers, which makes medical imaging and diagnostics equipment, would allow the company to focus on its core areas of factory and building automation as well as its train manufacturing.
Siemens floated Healthineers in 2018, but kept an initial 85 per cent.
($1 = 0.8575 euros)
