Siemens Sees Rising 2021 Profit in Post-Pandemic Rebound
Siemens AG forecast a slight increase in 2021 profit as the coronavirus pandemic wanes and the global economy returns to growth after a tough year for industrial companies.
Siemens predictedThursday that net income will rise “moderately” from the 4.2 billion euros ($4.9 billion) generated in the 2020 fiscal year that ended Sept. 30. It proposed cutting its dividend.
Europe’s biggest engineering firm warned that some pandemic-related challenges will remain, causing customer investments to lag behind economic growth, and negative currency effects to dampen operating profit at its core industrial businesses.
Siemens has so far weathered the Covid-19 crisis better than some of its automotive and industrial clients, partly because it was able to keep its factories running virtually uninterrupted. It’s also had an easier ride than U.S. rivalGeneral Electric Co., which unlike Siemens is reliant on aviation customers that have been hit by the collapse in air travel.
140,290 in U.S.Most new cases today
+5% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-0.8001 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
4.7% Global GDP Tracker (annualized), Sept.