- Major contract wins in Europe and Africa drive first-quarter orders up 27% year-over-year, at €22.8 billion; revenue 8% higher at €18.9 billion, for a book-to-bill ratio of 1.21
- Excluding currency translation effects, orders 22% higher and revenue up 4%
- Industrial Business profit climbs 10% year-over-year, to €2.0 billion, including margin expansion; strong increases in Healthcare, Energy Management and Mobility more than offset declines in Digital Factory, Process Industries and Drives and Wind Power and Renewables
- Net income of €1.6 billion, up 42% from the prior-year quarter which was burdened by factors outside the Industrial Business; basic earnings per share (EPS) of €1.89 compared to €1.30 in Q1 FY 2015
- We raise our previous expectation for basic EPS from net income in the range of €5.90 to €6.20 to the range of €6.00 to €6.40
"We delivered a strong quarter and are well underway in executing our Vision 2020. Therefore, we will raise our earnings outlook for 2016, even though the macroeconomic and geopolitical developments remain a concern for our markets. We continue to focus on addressing our structural challenges in the company and invest into further developing our markets and strengthening our innovation power."
Siemens announced today that it has started a 15-year technical support and spare parts supply agreement with the U.S. passenger rail operator Amtrak for its 70 new Siemens ACS-64 electric locomotives in operation on the Northeast Corridor. This is Siemens' largest technical support contract for passenger locomotives to-date in the U.S. In 2010, Amtrak ordered 70 Amtrak Cities Sprinter electric locomotives from Siemens. The first locomotives are already in passenger service.
In response to partly misleading media reports ‒ most recently in the Mittelbayrische Zeitung under the headline "Siemens knew" ‒ regarding the involvement of Siemens in the planned strategic realignment of Osram AG, Siemens comments as follows:
- Three shareholder representatives proposed for early re-election
The Supervisory Board of Siemens AG wants to ensure continuity in the long-term, successful implementation of the company's Vision 2020 strategy beyond the next regular re-election of shareholder representatives to the Supervisory Board in January 2018. Based on the Nominating Committee's recommendation, the Supervisory Board has therefore decided to propose to the Annual Shareholders' Meeting of Siemens AG on January 26, 2016 the early reelection of Dr. Nicola Leibinger-Kammüller, Jim Hagemann Snabe and Werner Wenning for terms extending until the Annual Shareholders' Meeting in 2021 in order to ensure their continued participation in the Supervisory Board beyond 2018.
- New unit to create more space for founder and startup culture
- Innovation funds of €100 million for employee ideas
- New research centers in China and Munich
- Company-wide Sinalytics platform for digital services
- Nine researchers honored for around 650 inventions
In the current fiscal year 2016, Siemens will invest around €4.8 billion in research and development (R&D) – some €300 million more than last fiscal year. R&D investment has thus increased about 20 percent since fiscal 2014. A major part of the additional funds is earmarked for automation, digitalization and decentralized energy systems. In fiscal 2015, research intensity ‒ defined as the ratio of R&D expenditures to revenue ‒ was 5.9 percent, an increase of 0.3 percentage points over the prior year. The company is also launching a bundle of measures to further increase its power of innovation.
- New claim stands for timeless engineering expertise, social values and genius
- Global launch in 2016 – the Werner von Siemens anniversary year
To coincide with the 200th birthday of its founder Werner von Siemens, the company is strengthening its global positioning with a new brand appearance, whose central component is the claim "Ingenuity for life." In the future, this claim will appear under the Siemens logo, whose design and color will remain unchanged. Siemens is combining its logo with a slogan. "Ingenuity for life" sums up what Siemens has stood for ever since its founder produced his trailblazing inventions: engineering expertise, genius, innovation and a sense of responsibility.
We released our financial figures for the fourth quarter and fiscal year 2015 on November 12, 2015. The press conference was broadcast live.
- Fourth-quarter orders up 15% year-over-year, at €23.7 billion, and revenue 4% higher at €21.3 billion, for a book-to-bill ratio of 1.11
- Volume development includes strong currency translation tailwinds; excluding currency translation and portfolio effects, orders up 6% and revenue down 4%
- Industrial Business profit up 9%, at €2.5 billion; strong improvements in Energy Management, Wind Power and Renewables, Healthcare and Mobility, more than offset substantial declines in Power and Gas and Process Industries and Drives
- Net income lower, at €1.0 billion, due mainly to Centrally managed portfolio activities; basic earnings per share (EPS) of €1.18 compared to €1.72 in Q4 FY 2014
- Free cash flow from continuing and discontinued operations of €4.4 billion, above the high level in the fourth quarter a year ago
"We delivered what we promised, and are well positioned to deliver on our plans for the year ahead."
Sabine Reichel has been appointed head of Siemens Investor Relations, effective December 1, 2015. In this capacity, she will succeed Mariel von Schumann, who is currently responsible for the company's investor relations activities in addition to heading Governance & Markets. Siemens Investor Relations will continue to be part of Governance & Markets.
- Guidance for fiscal 2015 met
- Ambitious outlook for 2016
- Substantial growth in orders expected despite weakening global economy
- Moderate revenue increase also anticipated
- Managing and Supervisory Boards propose dividend increase to €3.50
- New share buyback program of up to €3 billion over up to 36 months
- €200 million additional in employee profit sharing
Siemens has met its guidance for fiscal 2015 as planned and announced an ambitious outlook for fiscal 2016. In fiscal 2015, orders climbed six percent to €82.3 billion. Revenue was also up six percent to €75.6 billion. Excluding currency translation and portfolio effects, orders and revenue were both down one percent, roughly at the prior-year level. The book-to-bill ratio was 1.09. The profit margin for the Industrial Business was 10.1 percent. Net income totaled €7.4 billion (fiscal 2014: €5.5 billion). At €8.84, basic earnings per share were 39 percent above the prior-year figure. For fiscal 2015, Siemens had anticipated revenue on an organic basis at the prior-year level and a book-to-bill ratio of over one. An increase in basic earnings per share of at least 15 percent above the prior-year value of €6.37 had been forecast. The profit margin for the Industrial Business had been expected to be 10 percent to 11 percent.