Siemens CFO expects full-year sales growth below forecasts

ZURICH (Reuters) -Siemens will post lower-than-expected full-year sales growth, its Chief Financial Officer Ralf Thomas said in an interview published on Friday, although profits will not be harmed and its dividend could rise.

The German industrial group said in its last results on Aug. 8, that it expected full-year comparable revenue growth of 4% to 8%, although it was likely to be at the lower end of the range.

"In terms of sales growth, the trend is not towards 4%, but towards 3%," Thomas told German newspaper Boersen-Zeitung.

Thomas was quoted as saying that profitability was "clearly at the level we announced" at Siemens, which is due to report its full-year results on Nov. 14.

Siemens previously said it was aiming for full-year earnings per share in a 10.40 euro to 11.00 euro ($11.63-$12.30) range.

Although an overall weak economic situation was affecting Siemens, Thomas said it would "probably" raise its dividend.

The maker of industrial software and trains was being hit particularly by weak demand for factory automation in China, while Italy and Germany were also struggling.

"Automation really has to stretch itself to achieve its goals," Thomas said. "The first half of the next financial year will continue to be a major challenge."

It would take time for the latest Chinese economic stimulus to have an effect, said Thomas, and Siemens would focus more of its automation business on the U.S., where demand is growing.



"We have a lot of good ideas for the U.S," Thomas said.

($1 = 0.8940 euros)

Source: Investing.com