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Siemens Can Address Tariffs, CEO Confirms Following Q1 Earnings Exceeding Forecasts

Siemens CEO Roland Busch stated on Thursday in Zurich that the company is well-equipped to handle potential tariffs and economic uncertainties, following better-than-expected profits. Despite challenges in its factory automation sector, Siemens reported improving demand from industries such as electronics and semiconductors.

Busch highlighted that Siemens can manage macroeconomic risks "even given the current politically driven tariff structures and potential responses." He emphasized the importance of local production facilities, which help mitigate the impact of tariffs.

Moreover, Busch noted that if companies establish new facilities in the U.S. to avoid tariffs, it could lead to new opportunities for Siemens. The company's performance is considered a barometer for the overall industrial economy.

In the first quarter, Siemens reported an 8% decrease in industrial profit to 2.52 billion euros, surpassing analysts' expectations. Revenue rose by 3% to 18.35 billion euros, exceeding forecasts, and while orders were lower than the previous year, they still outperformed expectations.

Siemens' shares were anticipated to rise by 2.9% in early trading in Frankfurt. Despite positive results, challenges persist, such as struggles in factory automation and ongoing economic difficulties in Germany.

Busch stressed the need for clear government actions, including reduced regulations and lower energy costs, to address these issues.