SIEGY - Why Shares in Siemens Slumped Today
2024-03-19 13:03:34 ET
Shares in German industrial giant Siemens (OTC: SIEGY) were down by more than 6% at 11 a.m. ET this morning. The move comes after CFO Ralf Thomas's presentation at a Bank of America Industrials Conference warned of slower-than-expected orders growth at its key digital industries segment in its financial second quarter.
The digital industries segment comprises Siemens's automation, motion control, and industrial software businesses. It's seen as its most exciting long-term growth business due to its role in helping companies automate production and digitize their manufacturing processes.
However, the industry is seeking near-term weakness this year due to a slowing global economy and a notable weakness in China. In addition, distributors are destocking after a period of aggressively building inventory in response to supply chain challenges that caused delivery delays. Siemens's U.S. rival Rockwell Automation (NYSE: ROK) has reported similar conditions.
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Why Shares in Siemens Slumped Today