ZURICH (Reuters) -Siemens reported a drop in profit at its industrial business on Thursday and lowered its sales target for next year, citing geopolitical risks like trade conflicts and weak consumer demand.
The German engineering group said its industrial profit fell 7% to 3.12 billion euros ($3.29 billion) in the three months to the end of September, ahead of analyst forecasts for 3.0 billion euros.
The trains to industrial software maker, whose results are seen as a bellwether for the broader economy due its products being used in factories and infrastructure projects, reported revenue rising to 20.81 billion euros, slightly better than forecasts of 20.77 billion euros.
On a comparable basis, which cuts out the impact of currency swings, acquisitions and disposals, sales rose 2%.
For the company’s next financial year, which runs to the end of September 2025, Siemens said it expects its comparable revenue to increase by 3-7%, down from its 2024 goal for an increase of 4-8%.
For the full year, revenues on a comparable basis increased by 3%, with Siemens flagging more difficult times ahead.
“We anticipate moderate macroeconomic growth in fiscal 2025, due in part to continuing geopolitical uncertainty including trade conflicts, and also to ongoing challenges for the manufacturing sector due to overcapacity and weak consumer demand,” Siemens said.
“At the same time, infrastructure markets, particularly in electrification and mobility, remain strong.”
($1 = 0.9486 euros)
(Reporting by John Revill, Editing by Miranda Murray)
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