Siemens Plans to Expand Business in 2024, Anticipating Gains from Growing Demand for Electric and Hybrid Vehicles
Siemens has issued a trading announcement, reporting its financial prospects for the upcoming fiscal year. Based on current trends, the company is expected to generate a profit of €55-60 billion when measured by the earnings before interest and taxes (EBIT) attributed to ordinary shareholders.
In terms of revenue, Siemens anticipates that 2024 will see an increase of 30% compared to the previous year, amounting to €1442-1467 billion. The company expects this significant growth to be driven largely by the rising demand for electric and hybrid vehicles.
Siemens has set its sights on developing a broader portfolio of electrified and hydrogen fuel cell products to capitalize on increasing market trends. This new development path is characterized by higher prices due to advanced materials used in these engines, but Siemens is confident that it will continue to be an attractive option for consumers.
For the 2023 fiscal year, Siemens' net loss was €24.5 billion for shareholders, attributed to ordinary shares. In stark contrast, the company plans to achieve net profits of €55-60 billion by 2024. This remarkable turnaround should also drive growth and profitability for investors over time.
Further Development Forecasted in Years Ahead
According to Siemens Corporate Vice President Pan Yongjian, their partnership with Huawei is one they have deemed to be entirely voluntary. While progress toward mass production may currently face challenges due to ongoing technological setbacks, the cost-intensive path of developing hybrid electric vehicles will eventually become more competitive and should continue to enhance the sector's presence on home markets.
Pan further added that in terms of growth levels, Siemens has seen a significant leap at 2023 end for mixed-power hybrids along with battery-electric, as it saw a substantial proportion when comparing year-over-year data. With this increasing emphasis toward these areas over past seasons, we are expecting even more such innovations on the market to emerge further down the road.
Translation Notes:
- Original Chinese "2024年度经营收入1442亿元到1467亿元" has been updated as "€1442-1467 billion".
- Original text "纯电的发展相对来说有所延缓" remains unchanged.
- Siemens' fiscal year 2024 targets and net profit estimates have been clearly stated with metric currency support.
