Utmost reliability and maximum availability are critically important for ensuring the cost-efficient operation of rail vehicles and the infrastructure they use. After all, malfunctions and downtimes cost money, cause delays and frequently also lead to compensation claims from passengers, local transport purchasers and freight customers. Long before faults actually occur, their potential sources should be identified. To provide this information, Siemens is the first company in the rail industry to operate a special data analytics center, located in Munich, Germany.
- 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.
- Orders rose 14% to €22.5 billion and revenue was up 3% at €19.8 €billion, including strong growth contributions from Mobility and Digital Factory and new business particularly resulting from the merger of Siemens' wind power business with Gamesa Corporación Tecnológica, S.A.
- Book-to-bill ratio rose to reach 1.13, the highest ratio since booking of large Egypt orders in Q2 FY 2016
- On a comparable basis, excluding currency translation and portfolio effects, orders increased 7% and revenue grew 1%
- Industrial business profit at €2.2 billion, down 14% due mainly to a sharp decline in Power and Gas which more than offset excellent performance in the short-cycle businesses and Mobility; current quarter impacted by negative currency effects while Q1 FY 2017 benefited from a portfolio gain; Industrial business profit margin at 11.0%
- Net income rose 12% to €2.2 billion; the current period included a largely tax-free gain from the sale of shares in OSRAM Licht AG and benefited from sharply lower income tax expenses due mainly to the revaluation of future tax positions following U.S. tax reform; basic earnings per share (EPS) increased to €2.68 from €2.41 in Q1 FY 2017
"The first quarter underlines the strength of our company. We take advantage of the growth momentum of the global economic upturn and set benchmarks in industrial digitalization. We clearly understand our opportunities and we know what we have to do."
- Digitalization check: transparency of the digitalization capability of the machine park
- Virtual commissioning for OEM: faster commissioning and shorter time-to-market for machines
- Retrofit services for machine tools: economical retrofit measures instead of new investment
At the EMO 2017 in Hannover, Siemens is exhibiting new and expanded digital and classic Services for the machine tool industry – with new capabilities for identifying and exploiting additional productivity potential for machine tools. Machine tool operating companies use the new Digitalization Check as a Service from the portfolio of Manufacturing IT Services to create transparency of the digitalization capability of the machine park. With Virtual Commissioning as a Service, machine manufacturers (OEMs) use a virtual twin to significantly speed up both commissioning and time-to-market.
- Revenue rose 4%, to €83.0 billion; orders were strong at €85.7 billion, just 1% below the high level a year ago despite substantial, ongoing contraction in markets for the Power and Gas Division which recorded large orders in Egypt totaling €4.7 billion in the prior year; the book-to-bill ratio was 1.03
- On a comparable basis, excluding currency translation and portfolio effects, revenue rose 3% and orders declined 2%
- Industrial Business profit rose 8%, to €9.5 billion, with double-digit increases at Building Technologies, Digital Factory, Mobility and Process Industries and Drives more than offsetting declines at Power and Gas and Siemens Gamesa Renewable Energy (SGRE)
- Industrial Business profit margin reached 11.2%, with a majority of businesses within or above their target ranges
- Net income up 11%, to €6.2 billion, driven by the strong operating performance; basic earnings per share (EPS) of €7.44, well within the guidance range
- Siemens proposes to raise the dividend €0.10 per share, to €3.70 per share
"Our global team delivered excellent results in fiscal 2017, surpassing even the historic success of last year. Most businesses are stronger than ever and well equipped for the digital age. Nevertheless, we have to tackle structural issues in some individual businesses. There is a lot of work ahead of us in fiscal 2018. We will take advantage of our opportunities in the market and handle challenges carefully, responsibly and rigorously."
- Siemens Bank receives approval to operate as a merchant bank in Singapore
- Siemens becomes first industrial company to support its growth strategy in Asian and Australian markets with a local bank branch in Singapore
- Focus on project and structured finance lending business mainly in the business-to-business and business–to-government segments
The Monetary Authority of Singapore (MAS) grants approval for Siemens Bank GmbH Singapore Branch to operate as a merchant bank in Singapore. The new branch will cover financing activities for the Asia-Australia region. In addition to its main pillar, the loan and guarantee business, the branch will also provide selected finance advisory services for the Siemens group companies in Asia-Australia.
- Revenue rose 6% compared to Q2 FY 2016, to €20.2 billion, including a strong performance by short-cycle businesses, and orders were €22.6 billion, up 2% despite a high basis of comparison including orders totaling €3.1 billion in Q2 FY 2016 in Egypt; the book-to-bill ratio was 1.12
- On a comparable basis, excluding currency translation and portfolio effects, revenue rose 5% and orders increased 1%
- Strong margin expansion in nearly all industrial businesses due to strong operational execution, and a €138 million positive effect from pension plan amendments, took Industrial Business profit margin up to 12.1%
- Industrial Business profit climbed 18% year-over-year, to €2.5 billion
- Net income was level at €1.5 billion, despite a higher income tax rate and a lower contribution to net income from discontinued operations; basic earnings per share (EPS) of €1.79 compared to €1.78 in Q2 FY 2016
- At the end of Q2 FY 2017, Siemens acquired all shares of Mentor Graphics Corporation (Mentor Graphics) and, at the beginning of Q3 FY 2017, closed the merger of Siemens' wind power business with Gamesa Corporación Tecnológica S.A. (Gamesa)
"We delivered another strong team performance and continue to outperform the markets. In the second half of the fiscal year, we will focus on duly integrating Mentor Graphics and on a successful start of Siemens Gamesa Renewable Energy, while keeping a close eye on our operational performance. And there is more work to do."
- Revenue rose 8% compared to Q3 FY 2016, to €21.4 billion, including a strong performance by short-cycle businesses
- Orders came in 6% lower, at €19.8 billion, due to sharply lower volume from large orders at Power and Gas and at Siemens Gamesa Renewable Energy, the business resulting from the merger of Siemens' wind power business with Gamesa Corporación Tecnológica S.A. (Gamesa) beginning with Q3 FY 2017; the book-to-bill ratio for Siemens overall was 0.93
- On a comparable basis, excluding currency translation and portfolio effects, revenue rose 3% and orders were 9% lower
- Profit Industrial Business rose 3% to €2.3 billion; as expected, negative merger and acquisition effects related to Gamesa and Mentor Graphics Corporation (Mentor Graphics) reduced Industrial Business profit margin to 10.4%
- Net income rose 7%, to €1.5 billion; basic earnings per share (EPS) of €1.74, up from €1.64 in Q3 FY 2016 despite negative merger and acquisition effects
"Our global team delivered a solid quarter with revenue up 8% and net income growing by 7%. Our digital enterprise business impressively underscored its leading position in the market. We are fully on track with Vision 2020 and for another strong year."
- Randy Zwirn to retire
- Tim Holt to take on new CEO role as of October 1, 2016
Effective October 1, 2016, Tim Oliver Holt (46), who is currently CEO of the Power and Gas Business Unit within the Power Generation Services Division, has been appointed CEO of the Power Generation Services Division. Holt's replacement in his Business Unit assignment will be the subject of a future announcement. The Division's current CEO, Randy Zwirn (62), is retiring on October 1, 2016.