Siemens (SIEGn.DE) reported a decline in second-quarter earnings for its industrial business on Thursday, attributing the drop to a slowdown in its flagship factory automation division. The German engineering group saw its industrial profit fall by 2% to 2.51 billion euros ($2.73 billion) for the quarter ending in March, missing the average analyst forecast of 2.68 billion euros.
Overall sales fell by 1% to 19.16 billion euros, below the expected 19.28 billion euros, and net profit decreased to 2.19 billion euros. Siemens’ Digital Industries division, which includes factory software and automation, experienced a significant drop in orders and sales. In contrast, the buildings and transport divisions reported revenue increases. CEO Roland Busch highlighted the company’s resilience in areas like Smart Infrastructure and Mobility, despite the challenging market environment and muted demand in Digital Industries. Notably, orders in digital Industries fell 14% and sales dropped 13%, with China and Europe particularly affected.