We released our financial figures for the fourth quarter and fiscal year 2010 on November 11, 2010. The press conference was broadcast live on the internet.
In fiscal 2010, Siemens generated the largest operating profit in its history. Total Sectors profit rose four percent to €7.8 billion. Net income climbed 63 percent to €4.1 billion. Growth picked up speed once again during the year. While declining in the first two quarters, new orders and revenue rebounded sharply in the second half-year. For the full fiscal year, new orders increased by three percent to €81.2 billion, while revenue stabilized at €76 billion. “We completed fiscal 2010 very successfully. We’re coming out of the economic downturn with full momentum. Our growth is gaining speed. Operationally, we achieved record profit twice in a row. We expect to take this positive momentum into the next fiscal year. We have to keep winning, order by order,” said Siemens President and CEO Peter Löscher.
With its new target system for sustainable company development, Siemens is once again increasing the emphasis on growth. The One Siemens system sets ambitious growth and capital efficiency targets that the company intends to reach consistently from now on. “After twelve years of transformation, Siemens is again a normal world-class company. Over the last few years, Fit 4 2010 has enabled us to streamline Siemens for profitability and to give our company new clout. With One Siemens, we’re going to accelerate the pace and expand our strong position sustainably,” said Siemens President and CEO Peter Löscher. The target system charts a clear course: Siemens will concentrate primarily on innovation-driven markets like environmental technology, the high-growth emerging countries and the service business. As customers for comprehensive infrastructure solutions, cities will become a stronger focus for the company’s sales activities.
Christian Oecking (48) is now Managing Director and Chairman of the Management Board of SIS. Martin Bentler (49), Rainer Koppitz (42) and Thomas Zimmermann (42) continue as members of the Management Board of the IT service provider.
We completed fiscal 2010 very successfully. We are coming out of the economic downturn with full momentum. Our growth is gaining speed. Operationally, we achieved record profit twice in a row. We expect to take this positive momentum into the next fiscal year. We have to keep winning, order by order. We expect clear growth in new orders compared to fiscal 2010. Also, revenue should again grow moderately. We expect to continue the positive trend in earnings growth.
In fiscal 2014, Siemens wants to exceed the €40 billion revenue mark with green technologies. In fiscal 2010, Siemens generated revenue of around €28 billion with products and solutions from its Environmental Portfolio, compared to slightly less than €27 billion in fiscal 2009. The original target of generating revenue of at least €25 billion in 2011 was thus reached significantly earlier than planned. In 2010, the latest generation of high-efficiency transformers was also included in the technology company’s green portfolio for the first time. “Green innovations are our lifeblood. We’re the largest supplier of environmental technologies in the world. We want to – and we will – increase our advantage over our most important competitors,” said Barbara Kux, the member of Siemens’ Managing Board responsible for sustainability and the further development of the Environmental Portfolio.
Siemens has concluded a framework agreement with Enel Green Power for the supply of up to 260 wind power turbines for various wind farms in Europe. The total capacity of the onshore turbines is 600 megawatts, sufficient to supply more than 350,000 European households with clean wind power. The agreement with the subsidiary of the Italian utility Enel S.p.A. provides for delivery of the turbines between 2011 and 2014 and includes an option for delivery of a further 600 megawatts of wind power turbines. Maintenance of the turbines is also part of the agreement.
Siemens has clinched an order to supply 80 wind turbines for the Dan Tysk wind farm off Germany’s North Sea coast. With a total capacity of 288 megawatts, the farm will begin supplying clean electricity to 500,000 German households in 2014. Dan Tysk Offshore Wind GmbH, in which Vattenfall Europe has a 51 percent stake and the Stadtwerke München a 49 percent stake, is the customer. “Siemens is No. 1 worldwide in the offshore wind business. This order will make us the leader in Germany, too,” said Wolfgang Dehen, member of Siemens’ Managing Board and CEO of the company’s Energy Sector. Siemens is also launching a completely new business in Germany: the maintenance of grid connections between the mainland and wind farms on the high seas. The company has received its first order from grid operator TenneT to provide services for the mainland connections of two North Sea wind farms. On the North Sea coast and in Hamburg, Germany, Siemens also wants to create up to 100 new jobs in the wind power business.