- Revenue was €14.2 billion, nearly level with the same quarter a year ago, as increases at Siemens Healthineers and Mobility offset a decline at Digital Industries; orders declined 8%, to €15.1 billion, on sharply lower volume from large orders at Mobility
- On a comparable basis, excluding currency translation and portfolio effects, revenue declined 1% and orders came in 9% lower; the book-to-bill ratio of 1.06 remained well above one
- Adjusted EBITA Industrial Businesses was significantly lower at €1.6 billion, with all industrial businesses showing effects from the COVID-19 pandemic; Adjusted EBITA margin Industrial Businesses of 12.1% was held back also by severance charges of €0.2 billion, taking 1.2 percentage points
- Net income, including a loss of €0.3 billion from discontinued operations, was €0.7 billion compared to €1.9 billion in Q2 FY 2019, which benefited from income of €0.2 billion from discontinued operations as well as a lower tax rate; basic earnings per share (EPS) declined to €0.80
- Given the current situation, we can no longer confirm our original guidance for fiscal 2020; for our new guidance, see page 5 of this document
At the end of the second quarter of fiscal 2020, Gas and Power and Siemens Gamesa Renewable Energy (SGRE) were classified as held for disposal and discontinued operations. Prior-period amounts are presented on a comparable basis.
- Revenue stable, orders below prior-year level
- Order backlog at €69 billion, further €81 billion at Siemens Energy
- Outlook relativized due to COVID-19
- Timeline for spin-off of energy business confirmed
- Share buyback on hold due to spin-off
- Spin-off of Flender planned
Despite the clear
impact of the COVID-19 pandemic, Siemens AG performed solidly in the second
quarter of fiscal 2020. Revenue remained nearly unchanged, while net income
declined to €697 million compared to the strong prior-year quarter. Orders were
down primarily due to a lower volume from major orders at Siemens Mobility
year-over-year. In view of the current situation, Siemens will no longer
confirm its original guidance for fiscal 2020. Nonetheless, the company sees
itself well positioned both operationally and strategically for the coming
quarters. Implementation of Siemens’ Vision 2020+ strategy is right on track,
and the company is making faster progress than expected in achieving its cost
targets.
- Siemens Managing Board decides to form worldwide aid fund to help relieve
and combat the coronavirus pandemic
- Siemens to match all funds donated
by employees
- Fund to supplement numerous aid
programs already in place at international Siemens units
- Company and employees aim to help people stricken by the COVID-19 pandemic worldwide
- Entire Managing Board joins in donation campaign
- President and CEO lays foundation by donating €1 million
Effective immediately, the Managing Board of Siemens AG has decided to set up a COVID-19 aid fund. Under the auspices of the community-serving nonprofit organization Siemens Caring Hands e.V. (“Caring Hands”), this aid fund is to provide support, without red tape, to relief organizations and medical facilities as well as to individuals impacted by the COVID-19 crisis worldwide.
- Charter of Trust companies are helping with cybersecurity for telework
- Some 130,000 Siemens employees worldwide are working from home due to
the corona crisis
To slow the spread of the coronavirus, millions of people around the world have been working from home for about three weeks now – including more than 100,000 Siemens employees. Siemens and 16 other global companies from the Charter of Trust (CoT) initiative have developed eight tips for boosting cybersecurity so that employees can work just as securely from home as they do at the office. Their recommendations are meant to help ward off hacker attacks and enable companies to maintain business continuity. These tips range from switching off voice-controlled devices and covering webcams to not mixing personal and business use of devices. All recommendations have been published on the Charter of Trust website: bit.ly/39BB8Gv.
At the Munich Security Conference 2018, Siemens and eight partners from industry signed the first joint charter for greater cybersecurity. Initiated by Siemens, the Charter of Trust calls for binding rules and standards to build trust in cybersecurity and further advance digitalization. Since 2018, the Charter of Trust has grown to 16 members. In addition to Siemens and the Munich Security Conference, the signatories include AES, Airbus, Allianz, Atos, Cisco, Daimler, Dell Technologies, Deutsche Telekom, IBM, NXP, SGS, Total and TÜV Süd.
In addition, the German Federal Office for Information Security, the CCN National Cryptologic Center of Spain and the Graz University of Technology in Austria have joined the charter as associate members. On February 19, 2019, Mitsubishi Heavy Industries (MHI) signed a letter of intent to join the Charter of Trust for cybersecurity in Tokyo, expanding the Charter’s reach into Asia. The company’s membership is expected to be finalized by the end of September 2019. MHI will be the first Asian company to join the global cybersecurity initiative.
Siemens is setting the course for establishing the next generation of management. To this end, the Supervisory Board of Siemens AG has made pivotal personnel decisions at an extraordinary meeting.
- Joe Kaeser is not pursuing a further contract extension as President and CEO of Siemens AG and is to be proposed as Chairman of the Supervisory Board of Siemens Energy.
- Roland Busch has been named President and CEO of Siemens AG and is receiving a new contract for an additional five years. He is already to assume overarching responsibility for the Operating Companies Digital Industries, Smart Infrastructure and Mobility as of April 1, 2020.
- Christian Bruch, EVP at Linde plc, to become new CEO of the Gas and Power Operating Company and designated CEO of Siemens Energy.
- Maria Ferraro, CFO of the Digital Industries Operating Company, to become new CFO of Gas and Power and designated CFO of Siemens Energy.
- Michael Sen and Klaus Patzak to leave the company by mutual agreement.
- Spinoff and public listing of Siemens Energy at end of September 2020 being pursued on schedule and without change.
Siemens is setting the course for establishing the next generation of management. To this end, the Supervisory Board of Siemens AG has made pivotal personnel decisions at an extraordinary meeting today. Siemens President and CEO Joe Kaeser (62) has informed the Supervisory Board of Siemens AG that he will not be pursuing an extension of his contract. He will be proposed as Chairman of the Supervisory Board of Siemens Energy. The Supervisory Board has appointed Roland Busch (55), who is currently Deputy CEO, to be President and CEO of Siemens AG. At the latest, this appointment is to be effective at the end of the next ordinary Annual Shareholders’ meeting, which is to take place on February 3, 2021. He is receiving a new contract for five years, effective April 1, 2020. In this connection, he will already be responsible for the planning and implementation of the budget for fiscal 2021 and will be assuming all relevant responsibilities within the Managing Board. In addition to his current duties, Roland Busch will – effective April 1, 2020 – also already be responsible for the overarching integration and management of the businesses of the future Siemens AG (Smart Infrastructure, Digital Industries and Mobility) within the Siemens Managing Board.
- Successor to Robin Zimmermann, new Head of Communications at Siemens Energy
- Overall responsibility for global media relations and coordination of Managing Board communications
- Many years of international communications experience and extensive media network
Florian Martens (42) has been appointed the new Head of Global Media Relations and Executive Communications at Siemens AG, effective June 15, 2020. He succeeds Robin Zimmermann (49), who is now the Head of Communications at Siemens Energy. In addition to global media relations, Martens will be responsible for coordinating the Managing Board’s executive communications.
In an era of consumer-oriented production and economic uncertainty, industrial companies are constantly facing new challenges. We're integrating cutting-edge technologies like artificial intelligence, Edge and Cloud computing, and Industrial 5G into the Digital Enterprise. This is how we're enabling the intelligence that’s required for the production of customized products. On Wednesday, March 4, the CEOs of Digital Industries presented technological innovations as well as current product highlights. They showed numerous specific examples to demonstrate how companies need to think and act in ecosystems in order to implement Industrie 4.0. We also demonstrated how we’re combining the latest technologies with our domain expertise to make our solutions for the digital transformation more and more market-specific.
- Integration of cutting-edge technologies into the Digital Enterprise portfolio enables flexible and intelligent production
With its Digital Enterprise, Siemens is taking the next step of the digital transformation – on the way to highly flexible modular production. Siemens presents numerous innovations for the discrete and process industries as well as for energy and building infrastructure. The integration of cutting-edge technologies such as edge and cloud computing, artificial intelligence or additive manufacturing into the portfolio offers users new opportunities to achieve more flexible and intelligent production. Communicative networking through Industrial 5G plays a key role.