Latest news with #RolandBusch
Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Siemens warns US tariffs are causing investment caution
Siemens' shares jumped over 4% in Frankfurt after the results were released. (EPA Images pic) FRANKFURT : Siemens warned today that US tariffs were prompting its customers in key sectors to slow investment decisions, even as the German industrial giant reported forecast-beating quarterly profits. The group booked net profits of €2.2 billion (US$2.6 billion) from April to June, up 5% from a year earlier, as strong orders at its division that makes trains offset problems at its factory automation unit. Sales grew by 5% to €19.4 billion, and Siemens's shares jumped over 4% in Frankfurt after the results were released. However, CFO Ralf Thomas cautioned that Siemens's sprawling global business was not immune from heightened global volatility unleashed by US President Donald Trump's tariff blitz. 'Ongoing tariff uncertainties and trade tensions have dampened further recovery because of a rather cautious investment sentiment in important customer industries,' he said. He pointed to industries such as the automotive and production of industrial machinery ones. CEO Roland Busch added that, in several key industries, 'sales cycles have been extended and investment decisions are taking longer'. Busch said the US levies were impacting the group's unit that deals with factory automation, which had already been facing problems. 'Orders in the digital industry business recovered less strongly than anticipated due to the continuing high level of uncertainty regarding the future tariff environment and ongoing trade disputes,' he said. The unit, which supplies robotics, other machinery and industrial software to factories, saw revenues fall by 10% in the quarter, with sales of software hit particularly hard. The division will bear the brunt of 6,000 job cuts, about 2% of Siemens's global workforce, that were announced in March. It has been affected by muted demand, particularly in China and Germany. Siemens had long been a producer of heavy industrial equipment but has in recent years sought to shift its focus towards digital technology and factory automation.
CNBC
3 days ago
- Business
- CNBC
EU-U.S. trade deal triggers investments, says Siemens CEO
Roland Busch, CEO of Siemens discusses the impact global trade tariffs will have on earnings, and claims its German business holds it back.
DW
22-07-2025
- Business
- DW
'Made for Germany': German Companies show optimism – DW – 07/22/2025
German Chancellor Friedrich Merz has joined forces with the country's top business leaders, who pledge major investment to pull Germany out of recession. There is always an element of psychology in economics. If companies are confident they can do good business in the future, they will strongly invest. If prospects look poor, they will hold on to the money. The COVID-19 pandemic with its collapse of international supply chains, the war in Ukraine, the subsequent energy crisis and inflation, the weakening economy in China — all took a heavy toll on the export-oriented German economy. Economic activity nosedived. Germany slid into a lasting recession. Since then, optimism has not returned. The Organization for Economic Co-operation and Development (OECD) registered a lower investment ratio for Germany in 2024 than all other 38 member countries. That will soon change, according to the heads of leading companies in Germany. A total of 61 of them, including corporations such as Airbus, BASF, BMW, Deutsche Börse, Mercedes-Benz, Rheinmetall, SAP, Volkswagen but also the US corporations Nvidia, Blackrock and Blackstone — have launched the initiative "Made for Germany." The name is reminiscent, deliberately, of the slogan "Made in Germany" which has become a symbol of quality. Together, the corporations representing a third of the German economy want to invest €631 billion ($733 billion) in Germany over the next three years. The money will go toward new and existing factories, as well as research and development. "We want economic growth, we want to strengthen Germany's competitiveness, we want to defend our technological leadership or extend it further," one of the alliance's two initiators, Siemens chief executive Roland Busch, said following a meeting of the initiative with government politicians at the chancellery. Christian Sewing, chief executive of Deutsche Bank and co-initiator of the alliance alongside Busch, expects even more businesses to join. "Germany is back. It's worth investing in Germany again," said Chancellor Friedrich Merz of the conservative Christian Democrats (CDU) after the meeting. "We stand here before one of the largest investment initiatives that we have seen here in Germany in recent decades. We are not a location of the past, but a location of the present and above all the future," he added. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video The mood in the chancellery was clearly positive. However, the economic situation in Germany remains sluggish; the country is facing its third year in a row without growth. Given the tariff policies of US President Donald Trump, the outlook is anything but good. Reviving the economy is the top priority for Germany's new government. The coalition of the center-right Christian Democrats and Christian Social Union (CDU/CSU) and the center-left Social Democrats has been in office since early May. They have made their first steps: The Bundestag federal parliament and Bundesrat upper house have authorized the borrowing of €500 billion ($580 billion) for a special fund for government investment in infrastructure and climate protection. Its intended focus is to whip the country's ailing transport routes into shape, invest in energy networks, digitization and research. Energy prices for the industry will be reduced, and businesses are set for massive tax relief. Initially, investment in production facilities, machinery, equipment, research and development will be accounted for during tax assessments. In the medium term, taxes on business are to be reduced. In Friedrich Merz, Germany now has a chancellor who himself spent many years in business. Among other roles, the lawyer formerly chaired the supervisory board of the US financial investor BlackRock. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video "Today we have begun a new form of cooperation," Siemens head Busch said. "The conversation has shown that politics and business are on the same page." Deutsche Bank CEO Sewing added: "In my view, we are experiencing a government that is moving quickly. The most important things — growth and competitiveness — are right at the top of the agenda." To release the announced billions, politicians should ease up on regulations and give companies more freedom, Sewing said. Businesses are calling for reforms, especially concerning bureaucracy and social security contributions which push up the cost of labor. In Germany, employers and employees each pay half of worker contributions to health insurance, unemployment insurance and pensions. Due to higher costs for healthcare, health insurance contributions increased across the board at the beginning of this year. Contributions to long-term care insurance are expected to rise in 2026. In Germany, 42% of the gross national product goes toward social services. Pension funds are the biggest driver of this. Germany is an ageing society, and the baby boomer generation will retire from the workforce in the coming years. In addition, life expectancy is increasing. To afford the old-age pension, the government must contribute more money to the pension funds each year. According to the OECD, reforming social insurance is the biggest challenge for Germany. If nothing changes, the government will need to keep taking on more debt to keep social systems afloat. Chancellor Friedrich Merz has announced that reforming the social system is next on his coalition's political agenda. Initial findings are expected in the coming you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter, Berlin Briefing.
Yahoo
21-07-2025
- Business
- Yahoo
Siemens And Deutsche Bank Ceo's Make Their Joint Case For Germany
The CEO's of Deutsche Bank and Siemens join Oliver Crook in Berlin to discuss their 'Made in Germany' initiative which, looks to help mobilize the private sector towards the goal of reviving the country's economic growth and competitiveness. The powerhouse pair discuss plans for over 600B of pledges from various companies to invest in the country over the coming period including the roles of modernisation, AI & the digital transformation. The two leaders also discuss the impact of trade wars on Germany, with Siemens' Roland Busch saying there's a need to end uncertainty around tariffs, while DB's Christian Sewing dismisses any concerns that the country will cease being an exporting nation in the near future. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
21-07-2025
- Business
- Bloomberg
Siemens CEO Says Germany Has Big Industrial Data Set for AI Push
Siemens AG Chief Executive Officer Roland Busch said Germany must leverage the loads of data across its industrial companies to take advantage of artificial intelligence. 'We are sitting on a massive amount of data,' Busch said Monday during a Bloomberg TV interview. 'This is one of the most industrialized economies in the world, and again, small and medium sized enterprises, large ones, they're creating data from their buildings, their manufacturing sites, their engineering.'
