Siemens Slows Down in Second-Quarter Earnings Due to Struggling Factory Automation Division

Siemens fails to meet profit expectations due to challenges in industrial sector.

Siemens reported a drop in second-quarter earnings at its industrial business, the German engineering group said on Thursday, after a slowdown at its flagship factory automation division. The trains to industrial software maker said industrial profit fell 2% to 2.51 billion euros ($2.73 billion) in the three months to the end of March. That missed an average analyst forecast for 2.68 billion euros in a company-gathered consensus. Sales fell 1% to 19.16 billion euros, below the 19.28 billion euros expected, while net profit fell to 2.19 billion euros.

Digital Industries – the company’s factory software and automation division – struggled with lower orders, sales and profit during the period, the company said. In contrast, Siemens’s buildings and transport division both posted increases in revenues. “Siemens proved its resilience with strong revenue performance in Smart Infrastructure, Mobility and industrial software; this nearly offset currently muted demand in Digital Industries’ automation business,” Chief Executive Roland Busch said in a statement. Siemens, which warned in March that revenues at digital industries would be lower, said the market environment had been “challenging.”

Siemens said that Digital Industries’ orders fell by

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