Siemens expects destocking trend to continue longer
Cuts guidance for flagship Digital Industries business
Industrial profit misses forecasts
Confirms full year sales guidance

ZURICH, May 16 Reuters Siemens reported on Thursday a drop in secondquarter earnings at its industrial business, as China maintained its trend of destocking longer than previously expected.

The maker of items from trains to industrial software said its business was still being hit by uncertain customers preferring to run down supplies rather than buy new equipment.

Although Siemens expects an improvement in coming months, it was likely to come more slowly than previously thought, Chief Executive Roland Busch said.

A key reason is the muted development in China, he told reporters. Overcapacities in certain customer industries, such as solar and electric vehicles, are another reason.

He added, In addition, Europe39;s key exportdriven markets, such as Germany, are recovering only very sluggishly.

Siemens expects the destocking trend in China to run through the rest of 2024, although it expected stock levels in Europe and the United States to return to normal by the end of September.

As a result Siemens cut its fullyear outlook for digital industries, traditionally its most profitable business, saying it now expected a sales decline of 4 to 8.

The fortunes of Siemens are seen as an indicator for the health of the broader global economy, with its products used in transport systems as well…