Data centre surge drives growth for Siemens
By Josh White
Date: Thursday 14 Nov 2024
(Sharecast News) - Siemens reported significant gains in the past year on Thursday, driven by robust demand in energy and electrification sectors, despite ongoing challenges in its business divisions.
The company said it achieved record revenue, spurred by the growing demand for its transformers and grid technology amid a surge in power-intensive data centres, largely driven by AI investments.
That increased demand led it to project a 7% revenue growth for the upcoming fiscal year, up from 3% in the prior year.
The company's strong results also allowed it to raise its dividend by 11% to €5.20 per share.
However, the digital industries unit, which supplies factory-automation equipment, saw a 10% revenue decline due to weaker Chinese demand.
Siemens chief executive officer Roland Busch remains optimistic, citing growth opportunities in digitalization and decarbonisation.
The gains for Siemens came one day after Siemens Energy reported a €1.3bn profit for 2024, rebounding from a €4.6bn loss the prior year caused by quality issues in its wind turbine division.
While Siemens Energy had not entirely resolved the turbine quality issues, its chief executive officer Christian Bruch said no new technical faults had emerged.
The company upgraded its medium-term outlook, targeting a profit margin between 10% and 12% by 2028, an increase from the previous 8% minimum target.
At 1154 CET (1054 GMT), shares in Siemens AG were up 5.99% in Frankfurt, at €190.14.
Reporting by Josh White for Sharecast.com.
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