Siemens reported stronger-than-expected second-quarter earnings on Thursday and said the global surge in tariffs will have only a limited impact on its full-year profit, thanks to its diversified global manufacturing base and flexible pricing strategy.
The German industrial giant, known for its factory automation systems, software, and rail technology, posted a 29% rise in industrial profit to €3.24 billion, well above analyst expectations of €2.75 billion.
Tariff Strategy and Global Footprint:
CEO Roland Busch stated that while trade barriers do pose challenges, Siemens is well-positioned to mitigate their impact. The company estimates the total tariff-related effect on 2024 profit will be in the high double-digit to low triple-digit million-euro range.
To minimize exposure, Siemens is:
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Adjusting procurement strategies
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Diversifying production
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Increasing prices selectively (but cautiously)
“We’re going to act with a slow hand,” said CFO Ralf Thomas, indicating Siemens is not planning any immediate price hikes or shifts in manufacturing locations. The company operates 150 factories worldwide, including 28 in the U.S., 23 in China, and 12 in India, reducing its vulnerability to any one region’s trade policy.
Market Outlook:
Despite global economic uncertainty and customer caution — partly stemming from trade tensions between the U.S. and China, even as they declared a truce this week — Siemens reaffirmed its full-year sales growth forecast of 3% to 7% through September.
Siemens competes globally with peers like Schneider Electric and ABB, and remains a key barometer for global industrial demand. Its resilience to tariffs and strong quarterly performance reinforce investor confidence, even in a volatile trade environment.