Limited Tariff Impact on Siemens' Profit

Siemens anticipates a minor profit impact this year. Global tariffs are ramping up. However, their global production helps reduce negative effects. Executives mentioned they could raise prices again if needed. Despite a US-China trade truce, customer uncertainty remains high. CEO Roland Busch stated they foresee a limited profit impact from tariffs. This impact is estimated at a high double-digit to low three-digit million euros.

Navigating Customer Uncertainty

Wider knock-on effects are hard to predict. This includes customer behavior and global demand. The overall economy also faces uncertainty. Busch explained Siemens is reacting. They are changing procurement and adjusting prices. Diversifying production capacities is also a strategy. The company has 150 factories worldwide. This includes 28 in the US and 23 in China. India hosts 12 factories. This global footprint reduces trade barrier impacts.

Strategic Production and Pricing

Siemens will not alter its production footprint. Furthermore, they are not keen to raise prices again. They made some adjustments earlier this year. This countered tariff impacts. CFO Ralf Thomas said they will act cautiously. He added they see no immediate trigger for price hikes. Despite uncertainty, Siemens confirmed its sales guidance. They expect a 3% to 7% increase this financial year. The year ends in September.

Strong Second Quarter Performance

Siemens competes with Schneider Electric and ABB. Their industrial profit rose 29%. It reached 3.24 billion euros in the last three months. This beats the analysts' forecast of 2.75 billion euros. Moreover, sales increased by 7% to 19.76 billion euros. This also exceeded forecasts. Orders increased by 10%. The previous exchange rate was $1 equaling 0.8931 euros.