Siemens sticks to forecast despite uncertainty

Siemens sticks to forecast despite uncertainty

German industrial giant Siemens reported an unexpected jump in quarterly profits Thursday and stuck to its outlook for the year but warned of "increased uncertainty" in the global economy. Net profit came in at 2.4 billion euros ($2.7 billion) between January and March, up 11 percent from a year earlier. Analysts had forecast a slight decline. The better than expected results were driven by strong performances in the mobility division -- which makes products including trains -- and the infrastructure unit due to strong demand for data centres. Sales at the group rose six percent to 19.8 billion euros. However, the troubled digital industries division, which makes software and factory automation systems, reported a five-percent slide in sales. The digital division will bear the brunt of some 6,000 job cuts -- around two percent of the groups global workforce -- which Siemens announced in March. In its second quarter, Siemens also completed its acquisition of Altair, a US software firm using artificial intelligence. It is also in the process of buying Dotmatics, a US manufacturer of scientific software. Both acquisitions "will bring new AI offerings to our customers and open up new opportunities in growth markets such as life sciences," Siemens CEO Roland Busch said. The group confirmed its outlook for 2025, forecasting sales growth of between three and seven percent driven by its infrastructure and mobility divisions. It also warned of "increased uncertainty in the economic environment". US President Donald Trumps hardline trade policies have upended the long-standing system of global commerce, sparking turmoil on markets and fears of a global downturn.