Although reporting that third quarter profits missed forecasts on Thursday, German industrial engineering giant Siemens says is sees a “normalization in demand,” especially in China

The engineering group reported that for the three months to the end of June, industrial profit fell 4% to 2.75 billion euros ($3.02 billion). That was below analysts’ forecasts of  2.90 billion euros in a company-gathered consensus estimate.

The company’s group level outlook for the year through the end of September stayed steady, however it downgraded its expectations for its digital industries business, which supplies software and controllers to factories.

Widely seen as the most important division in the company by analysts, digital industries now sees comparable revenue growth of 13% to 15%, compared to previous estimates of 17% to 20%. The profit margin is now expected to fall in a range of 22% to 23%, roughly 0.5% below previous estimates.

Chief Executive Roland Busch emphasized that some markets were showing weakening demand, after customers had preordered products in previous quarters to avoid shortages.

In a statement he said, “We have seen a normalisation of demand, particularly in China and in short-cycle business.”