Combined press and analyst conferenceWe released our third quarter results for fiscal year 2018 on August 2, 2018 and outlined a strategy update. The combined press and analyst conference was broadcast live.
The Supervisory Board of Siemens AG intends to propose to the Annual Shareholders’ Meeting the appointment of Ernst & Young GmbH, Stuttgart, to serve as independent auditors for fiscal 2019. This is the result of an intensive dialogue between the Supervisory Board, the Audit Committee and the Managing Board of Siemens AG as well as of an extensive tender process pursuant to relevant European statutory provisions. In the view of the aforementioned governing bodies and committee, Ernst & Young presented the most attractive offer in the tender process.
- 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.
- New order will bring eight S70 low-floor streetcars to the OC Streetcar project
Siemens Mobility today announced that it has been awarded a contract from the Orange County Transportation Authority (OCTA) for eight streetcars. The contract includes spare parts and tools, and comes with the option to purchase up to 10 additional streetcars at a later date. Siemens will provide systems support and training to operators and maintenance technicians once the vehicles are delivered, expected early 2021.
At its meeting yesterday, the Supervisory Board of Siemens AG approved the company's new Vision 2020+ strategy and reassigned responsibilities within Siemens' Managing Board.
- New company structure: Three "Operating Companies" – "Gas and Power", "Smart Infrastructure" and "Digital Industries" – and the "Strategic Companies" Siemens Healthineers, Siemens Gamesa and the planned company Siemens Alstom
- More entrepreneurial freedom at individual businesses for accelerated growth: Revenue and margin targets raised
- Targeted expansion of digitalization business: Acquisition of mendix
- New growth field: "Internet of Things (IoT) Integration Services"
Siemens is setting the course for long-term value creation through accelerated growth and stronger profitability with a simplified and leaner company structure. The main aim of the Vision 2020+ company strategy is to give Siemens' individual businesses significantly more entrepreneurial freedom under the strong Siemens brand in order to sharpen their focus on their respective markets. Plans also call for strengthening the company's growth portfolio through investments in new growth fields such as IoT integration services, distributed energy management and infrastructure solutions for electric mobility. The concentrated expansion of industrial digitalization, in which Siemens is already the world leader, will make a further contribution. As a result, both the annual revenue growth rate and the profit margin of the company's Industrial Business are expected to increase by two percentage points over the medium term. Basic earnings per share are expected to grow faster than revenue over the medium term.
- Siemens to acquire mendix, a leader in low-code application development, for €0.6 billion
- Acquisition to accelerate adoption of MindSphere by ecosystem growth and 10x faster application development
- Closing of transaction expected in first quarter of fiscal year 2019
Siemens has signed an agreement today to acquire mendix, a pioneer and leader in cloud native low code application development. Under the agreement, Siemens will pay in cash €0.6 billion to acquire the company. Mendix will retain its distinct brand, culture and continue serving customers across the full range of industries with its unique platform and broad ecosystem and community. Siemens will continue to invest in mendix's independent product roadmap, continuing its legacy as the most-innovative, open low-code cloud platform. Mendix will be part of the software business of Siemens' Digital Factory (DF) Division, with the mendix platform also deployed across other Divisions.
- Heat and power for the Rhine-Ruhr metropolitan region
- Fuel efficiency exceeding 85 percent
- Long-term service agreement
Siemens and STEAG GuD Herne GmbH signed an agreement today on the turnkey construction of a combined cycle power plant with district heat extraction. They also entered into a long-term service agreement. The Herne 6 plant will have an electrical capacity of more than 600 megawatts (MW). Steam will also be extracted, and the thermal energy obtained will be used for the district heating grid of Germany's Rhine-Ruhr metropolitan region. Never before has a single power plant unit been able to provide 400 MW of (thermal) district heat with combined cycle operation. The overall fuel efficiency of the natural gas used thus climbs to more than 85 percent, making the power plant one of the world's most efficient and most environmentally friendly plants. The investment volume for Herne 6 is in the mid-triple-digit euro range.
- Siemens' Travel Sense application allows RSUs to collect anonymized data from passing vehicles -- via Wi-Fi, Bluetooth or DSRC -- and make it available on the cloud, eliminating the need for additional hardware.
Siemens Intelligent Traffic Systems announced it is now making travel time and traffic congestion gathering capability available on its popular ESCoS Roadside Unit (RSU) via a new cloud application called Siemens Travel Sense, an easy-to-use data analytics platform and a game-changer for agencies wanting to consolidate units offering different capabilities. This additional capability now adds to Siemens' impressive lineup of already-supported CV RSU applications which includes: Time-to-Change, Curve Speed Warning, Variable Speed Limit, Wrong Way Entry, Exit Ramp Deceleration Warning, Work Zone Warning, Transit Signal Priority, Emergency Vehicle Preemption and Pedestrian Collision Warning.
- Plants add up to 14.4 GW capacity to Egypt's national grid
- Enough power to meet the electricity needs of up to 40 million people
- Helping the country save over $1 billion annually on fuel costs
In collaboration with the Egyptian Ministry of Electricity and Renewable Energy, Siemens and its consortium partners, Orascom Construction and Elsewedy Electric, announced today the completion of the Egypt Megaproject in record time. The parties celebrated the combined cycle commissioning and the start of operations at the Beni Suef, Burullus and New Capital power plants. The stations will add a total of 14.4 gigawatts (GW) of power generation capacity to Egypt's national grid, enough power to supply up to 40 million people with reliable electricity. With this milestone, Egypt and Siemens have set a new world record for execution of modern, fast-track power projects, delivering 14.4 GW of power in only 27.5 months. A single combined cycle power plant block with a capacity of 1,200 megawatts typically takes approximately 30 months for construction. For the Egypt Megaproject Siemens in parallel built twelve of these blocks in record time and connected them to the grid.