Siemens's share slump to one-year low after CFO's gloomy outlook
Reuters
Published Mar 19, 2024 09:35AM ET
(Reuters) - Shares in Siemens slumped to their lowest in one year after its finance chief Ralf Thomas commented that revenues at its flagship digital industries division will be flat in the second quarter at a Bank of America conference on Tuesday.
Thomas said the German technology conglomerate forecasts revenue at the division to be a good 10% below the previous year's levels.
Margins for the division are seen at 17% in the second quarter, rather than the 20% previously expected.
Thomas's comments on sales and margins were described by Redburn Atlantic analyst James Moore as concerning.
Shares were trading down 5.35% at 1323 GMT, at the bottom of the pan-European index.
Two traders also pointed to cautious comments on China from Thomas, who sees a more difficult environment than expected in China in factory automation.
"The destocking will take longer than expected, probably until the end of the year," Thomas said, according to a recording of the event.
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Written By: Reuters
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