Siemens, the German industrial company, has announced its impressive financial results for the first quarter of fiscal 2024. The company reported a net profit of 2.39 billion euros ($2.57 billion), surpassing analysts’ expectations. This is a significant increase compared to the previous year’s net profit of EUR1.48 billion. Siemens also saw its revenue grow by 1.9% to reach EUR18.41 billion.
Although orders for the period decreased by 1.4% to EUR22.30 billion, the company’s backlog remains strong at EUR113 billion. The reported net profit of EUR2.39 billion exceeds analysts’ forecast of EUR1.69 billion, and the revenue of EUR18.41 billion is slightly lower than the expected EUR18.58 billion, according to a company-provided consensus.
Siemens attributed its strong financial performance to overall earnings growth in most of its industrial businesses. Particularly, its smart infrastructure business achieved its highest-ever quarterly profit, driving the positive results. However, the digital industries business experienced a decline in profit due to setbacks in the automation sector.
In line with its previous announcement in November, Siemens plans to initiate a new share buyback program worth up to EUR6 billion over the next five years.
Despite global economic uncertainties, Siemens retains its optimistic outlook for fiscal 2024.