German conglomerate Siemens announced on Thursday its newest growth targets, in line with the corporation’s aim to “clearly outpace the market.” This is the first step to be made as part of a new strategic blueprint by the new Chief Executive Officer Roland Busch, who took the reigns from Joe Kaeser in February.
Busch intends to win over customers in both the hardware and software market segments. To do so, Siemens will be looking to boost its digital offering used to improve the performance of its buildings, factories, and trains, consequently extending beyond the engineering company’s traditional industrial customer base.
Busch said the following in a public statement: “Digitalization, automation and sustainability are growth engines for our business. Here, our core business and our digital business reinforce each other in a virtuous circle.”
Siemens’s annual revenue growth target has been raised from between 4-5% to 5-7%. At the forefront of this revised growth rate is the German automation company’s digital technology offerings, which have a growth rate of 10% per year.
As Siemens looks to achieve its revised targets, the company will conduct a 3 billion euro ($3.58 billion) share buyback, starting in October 2021 and expected to run until 2026.
