Siemens shares tank, results miss
Siemens’ stock slides after it missed profit forecasts in its latest quarter. Demand in some markets, including China, weakened. So, where will demand come from in the months ahead, asks IGTV financial analyst @AngelineOng?
(Video Transcript)
Siemens shares plunge 5.5%
Siemens' shares are feeling the pain this session. It's currently down some 5.5% after the company missed its profit forecast in its latest quarter.
Just taking a look at the chart here for you, because we have this on the IG platform. Look at that red bar there. Quite a steep drop after it missed its profit forecast and disappointed.
And it also said that it was due to weakening demand in several markets, including China, that you've seen the weak data out of the Chinese economy earlier this week.
COVID recovery elusive for many
So it's no surprise that the claims to factory automation manufacturer said that China, a long driver of global manufacturing and its third-largest market, in fact, had seen only a tepid recovery after its zero COVID shutdown last year.
Many companies out there had been hoping for a post-lockdown recovery, but that's not happened. What's also more interesting is Siemens says it's seeing a change in investment patterns by some customers regarding China. This is after the rising tensions between Beijing and Washington.
Also showing you ABB here because Siemens says its clients are increasingly looking at building new facilities outside of China. And this mirrors comments from ABB as well. For more videos from us here at IGTV, join us on Twitter at IGcom, Instagram, and subscribe to our YouTube channel. yo
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