Siemens forecasts up to 20% drop in business in April-June quarter

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Siemens forecasts up to 20% drop in business in April-June quarter

Siemens, the Munich-based German multinational engineering conglomerate had been anticipating a contraction of as much as 20 per cent at its business activities during the second quarter of the year, the German engineering company’s CFO (Chief Financial Officer) Ralf Thomas said in an interview with a German newspaper Boersenzeitung on Saturday.

Aside from that, Siemens CFO Thomas had also told to Boersenzeitung that the business activities would likely to remain below 2019-level until end-2021, raising a red flag over the German industrial sectors which had been the lifeblood of the bloc’s largest economy.

April-June quarter will be a big challenge, says Siemens CFO Thomas

Meanwhile, adding further holocaust over the largest engineering company in Europe, Ralf said in the interview with Boersenzeitung that the company’s fiscal third quarter that ended on June 30 would likely to witness an en-masse dive in revenues of the German deep-pocket engineering trailblazer adding “April to June, will be a big challenge for us, as for most other market participants as well due to the coronavirus crisis.

However, it will not be a bottomless fall. ” On top of that, the Siemens CFO had also added that the business volume of the Munich-based conglomerate’s short-cycle activities might have contracted between 10 to 20 per cent over the company’s fiscal third quarter of the year that runs April to June.

Apart from that, Thomas was quoted saying on May this year that the company was bracing for a drop of as much as 5 per cent in annual revenue during its financial year ending on September adding that the business activity would likely to hover below 2019-level across all businesses and regions until end-2021.

Besides, the German newspaper Boersenzeitung had also quoted Thomas as saying that the Europe’s largest engineering industry conglomerate had a competitive advantage over its rivals in some regions, however, the newspaper report did not provide details.

Nonetheless, before the onset of the pandemic outbreak in Europe, Siemens CFO Thomas had forecasted a moderate growth of the company over the coming years.