- Diverse suite of financial solutions provide necessary capital to expand growing energy storage sector
- Granting customers access to a combination of proven, bankable energy storage solutions with tailored financing
- Leasing and project finance options for qualified projects using Fluence's industry-leading trio of energy storage platforms
Siemens Financial Services (SFS) and Fluence, a Siemens and AES company, announce a comprehensive financing program to support customers in their investments in energy storage solutions. The new financing program will offer customers leasing and project finance options for qualified projects using Fluence's industry-leading trio of energy storage platforms. Fluence's combination of unmatched energy storage experience, proven technical solutions, and the availability of tailored financial solutions will further drive down the total system costs of energy storage and accelerate the growth of this dynamic segment of the power market, estimated by Bloomberg New Energy Finance (BNEF) to be a $100 billion market opportunity by 2030.
- Real-time data analysis from 29 gas turbines across multiple locations will increase availability, reduce forced outages and enable proactive, prescriptive maintenance
- Digitalization to improve availability, efficiency, productivity and flexibility
Siemens will install state-of-the-art Remote Diagnostic Services (RDS) for GAIL (India) Limited covering 29 gas turbines operating across the Hazira-Vijaipur-Jagdishpur (HVJ) pipeline and the Vijaipur C2/C3 Plant. The scope includes the supply of RDS hardware, site installation and commissioning including remote Operational Service Desk (OSD) and helpdesk services. The OSD will be accessible 24/7, equipped with machine learning tools and manned by technical experts to provide faster, high quality troubleshooting and guidance for problem resolution.
- Orders grew 6%, to €23.6 billion, and revenue rose 4%, to €20.9 billion, for a book-to-bill ratio of 1.13 and record high order backlog of €142 billion
- On a comparable basis, excluding currency translation and portfolio effects, orders increased 4% and revenue was up 2% compared to Q2 FY 2018
- Adjusted EBITA for Industrial Business climbed 7% to €2.4 billion, with most businesses increasing their performance; Industrial Business Adjusted EBITA margin reached 11.4%, even with severance charges taking 0.3 percentage points
- Net income reached €1.9 billion, near the prior-year level which benefited substantially from a €0.7 billion Adjusted EBITA from Centrally managed portfolio activities; the current period benefited from a lower income tax rate, and basic EPS of €2.24 was burdened by €0.08 from severance charges
"We delivered on our promises again this quarter, and even exceeded expectations in many areas. Now, we enter into a new era to become an even stronger and more focused Siemens."
- On a comparable basis, excluding currency translation and portfolio effects, orders rose 8% and revenue increased 2%, with the majority of the industrial businesses contributing to growth
- On a nominal basis, orders rose 6%, to €91.3 billion; revenue was up slightly at €83.0 billion; the book-to-bill ratio was 1.10
- Industrial Business profit came in lower, at €8.8 billion, as profit increases in most industrial businesses did not fully offset sharply lower profit at Power and Gas
- Industrial Business profit margin excluding severance charges of 11.3%, clearly in the guidance range of 11% to 12%; profit margin including severance charges of €0.8 billion was 10.4% with most industrial businesses within or above their target ranges
- Net income up slightly at €6.1 billion; basic earnings per share (EPS) of €7.12; excluding severance charges, basic EPS at €7.88, well within the guidance range of €7.70 to €8.00
- Free cash flow rose to €5.8 billion, up 22% year-over-year
- Siemens proposes to raise the dividend €0.10 per share, to €3.80 per share
- Successful completion of share buyback program initiated in November 2015 with a volume of €3.0 billion; new share buyback program announced with volume up to €3.0 billion until November 2021
"We again delivered what we promised and fully reached our guidance which we raised at mid-year. This shows the strength of our global team which competed convincingly in both growth markets and difficult environments, and achieved another strong performance. In fiscal 2019 we will give our businesses even greater entrepreneurial freedom, and lay the foundation for execution of Vision 2020+."
- Orders increased 13% on a comparable basis, excluding currency translation and portfolio effects, and revenue grew 2% compared to Q1 FY 2018
- On a nominal basis, orders rose 12%, to €25.2 billion and revenue was up 1%, to €20.1 billion; the book-to-bill ratio was 1.25
- Adjusted EBITA for Industrial Business was lower, at €2.1 billion, due mainly to a decline in Power and Gas; Industrial Business Adjusted EBITA margin at 10.2%, held back by severance charges amounting to 0.4 percentage points
- Net income came in at €1.1 billion, resulting in basic EPS of €1.26, which was burdened by €0.08 from severance charges; the change year-over-year is due to two substantial positive factors outside of Industrial Business in the prior-year period: a gain from the sale of shares in OSRAM Licht AG and sharply lower income tax expenses related to U.S. tax reform
"Our continued high order growth underlines the customer confidence in the performance of our company. There is still much to do before we achieve industry-leading margins in all our businesses."
- Revenue was €20.1 billion, nearly unchanged from Q2 FY 2017, and orders were also strong at €22.3 billion, 2% below the high basis of comparison a year earlier which included a substantially higher volume from large orders; the book-to-bill ratio was 1.11
- On a comparable basis, excluding currency translation and portfolio effects, revenue was level and orders declined by 1%
- Industrial Business profit of €2.3 billion and Industrial Business profit margin of 11.0%; strong performance led by Digital Factory, held back by a sharp decrease in profit and profitability at Power and Gas
- Net income of €2.0 billion included a €0.7 billion profit from Centrally managed portfolio activities; basic earnings per share (EPS) increased to €2.39, up from €1.75 in Q2 FY 2017
- The successful initial public offering (IPO) of Siemens Healthineers AG included the float of a 15% interest in the business
"Most of our businesses, primarily our digital offerings, showed impressive performance and operationally more than offset structural challenges in fossil power generation. By raising our guidance, we demonstrate our commitment to the company’s capability to master structural change and shape digital industry."
- On a comparable basis, excluding currency translation and portfolio effects, orders rose 21% and revenue was level with the prior-year period
- On a nominal basis, orders climbed 16% to €22.8 billion driven by a higher volume from large orders, while revenue came in at €20.5 billion, 4% lower than the prior-year quarter due primarily to currency translation effects; the book-to-bill ratio was 1.11
- Industrial Business profit was up 2% at €2.2 billion and Industrial Business profit margin was 10.7%; excellent performance by Digital Factory and improvements in many Divisions partly offset by a sharp decrease in profit and profitability at Power and Gas
- Net income of €1.2 billion was held back by substantially higher income tax rate compared to Q3 FY 2017, which also benefited from positive effects in Centrally managed portfolio activities; basic earnings per share (EPS) of €1.36 compared to €1.67 in Q3 FY 2017
"Our global team delivered a strong quarter, highlighted by outstanding order intake, outperforming the market. We diligently address our opportunities and challenges going forward," said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Building on its commitment to supporting the energy infrastructure in Sudan, Siemens has signed a long-term agreement with the Sudanese Thermal Power Generating Company (STPGC) to provide service and maintenance for the power generating assets and related components operating at the 337 megawatt (MW) Port Sudan and 502 MW Garri power plants.