Shares indicated 1.8 higher

FRANKFURT, Nov 16 Reuters Siemens on Thursday gave a more cautious sales outlook for 2024 after the trains to industrial software maker reported fourthquarter industrial profit ahead of expectations.

The German group, whose products are used to automate factories and buildings, said it expected its revenue to grow 48 in the next 12 months.

The target marks a slowdown from the 11 revenue increase the German industrial heavyweight posted for its 2023 business year, which ran to the end of September.

That is mainly due to muted expectations at Siemens AG39;s industrial automation division, where sales could grow up to 3 or stagnate.

This is based on the assumption that following destocking by customers, global demand in the automation businesses, especially in China, will pick up again in the second half of the fiscal year, the group said.

During its fourth quarter, Siemens sales rose 10 to 21.4 billion euros 23.19 billion, beating the 20.99 billion euros forecast in a companygathered poll of analysts. Industrial profit, too, grew 7 to a record level of 3.4 billion euros, higher than the 3.34 billion euros forecast.

Shares in the company were indicated to open 1.8, with a trader pointing to the group39;s solid outlook and results.

Fiscal 2023 was a year of multiple records In our Industrial Business, profit and profit margin reached their highest levels ever, and we nearly doubled our net income to a historic high, CEO Roland Busch…