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STORY: Siemens missed profit forecasts over its latest quarter.

The German engineering company blamed weaker demand in a number of markets.

Revenue rose 6% to almost $21 billion, while net profit almost reached $1.6 billion, but both missed forecasts.

Siemens said Thursday (August 10) that China's recovery had underwhelmed.

The company also now sees a "normalization of demand" after customers pre-bought last year to avoid shortages.

Orders rose by a tenth during the three months to the end of June - down from a 13% rise in the previous quarter.

Siemens said customers globally were running down their stocks of components.

It's a trend the firm expects to continue in the near term.

The company kept its group-level outlook for the year.

But it lowered expectations for its digital industries business which supplies factories with controllers.

The division is seen by analysts as the firm's leading sector.

It now expects comparable revenue growth of up to 15%, below a previous high forecast of a fifth.

Investors weren't overjoyed by what they heard, with shares down over 5% after the update.