We released our first quarter results for fiscal 2015 on January 27, 2015. The press conference was broadcast live.
- First-quarter revenue up 5% to €17.415 billion; on a comparable basis, excluding currency translation and portfolio effects, revenue up 3%
- Orders of €18.013 billion for a book-to-bill ratio of 1.03; 11% decline compared to Q1 FY 2014, which included a €1.6 billion order in Saudi Arabia
- Industrial Business profit of €1.819 billion 4% lower due mainly to Power and Gas as expected; Industrial Business profit margin within the expected range
- Income from continuing operations of €1.106 billion burdened outside the Industrial Business; furthermore negative swing within discontinued operations affects Net income which was €1.095 billion, with basic earnings per share (EPS) of €1.30
- Strong contribution to Free cash flow from Industrial Business
- During the first quarter, Siemens classified the hearing aid business as discontinued operations; prior-period results are presented on a comparable basis
- Portfolio milestones include closing the acquisition of the Rolls-Royce Energy aero-derivative gas turbine and compressor business in the first quarter; followed, in January 2015, by closing the divestment of the hearing aid business (expected pretax gain: approximately €1.6 billion), closing the divestment of Siemens' stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH) (expected pretax gain: approximately €1.4 billion), and completing the contribution of the metals technologies business into a joint venture; furthermore, we expect a profit impact due to a funding commitment of €0.3 billion related to Unify Holdings B.V. in the second quarter
"The performance of most of our businesses was within our expectations. While some Divisions provided excellent performance, Healthcare needs to step up its efforts to quickly resume to its outstanding performance and Power and Gas will need a more comprehensive concept to return to historical margins longer turn."
- Healthcare management reorganized with Bernd Montag as CEO
- Head of Power and Gas Division leaves Siemens
Janina Kugel, previously Corporate Vice President Human Resources and Siemens' Chief Diversity Officer, was appointed to the Managing Board by the Supervisory Board of Siemens AG at its meeting today. Kugel will succeed Siegfried Russwurm as head of Human Resources and will also serve as the new Labor Director of Siemens AG. Siegfried Russwurm will be the Board-level partner for the separately managed Healthcare business, while retaining his regional responsibilities for the CIS and Middle East as well as his position as Chief Technology Officer. Hermann Requardt is stepping down from the Managing Board and his position as Healthcare CEO by mutual consent to enable a generation change at the launch of the new Healthcare company. Requardt will remain available in an advisory capacity. All changes will take effect on February 1, 2015.
- New outbound baggage screening and inbound baggage handling system
- Project completion planned for summer 2017
- Los Angeles International Airport is the sixth busiest airport in the world
Southwest Airlines® has chosen Siemens to install a new baggage handling system in Terminal 1 at Los Angeles International Airport (LAX). The project covers layout, engineering, assembly, commissioning and integration of a completely new outbound baggage screening system and a new inbound baggage handling system. The extension and conversion work will be performed during ongoing operations with completion planned for summer 2017.
- Joe Kaeser, Horst Seehofer and Dr. Florian Janik present winning design
- Important milestone reached in this €500-million project
- Strong symbol for the state of Bavaria, the city and Siemens
- Construction work to be performed in stages from 2016 through 2030
The "Siemens Campus in Erlangen," which is being planned as Siemens' largest location worldwide, will be built according to the design drafted by the architecture firm KSP Jürgen Engel Architekten of Frankfurt, Germany. This decision was made today in Erlangen by the jury comprised of high-caliber stakeholder representatives and experts from related fields. "We're building the Siemens Campus in Erlangen to provide a home to top researchers from all over the world. When the political, business and scientific communities work hand in hand, that's the best investment in Germany's future as an innovation hub," said Joe Kaeser, President and CEO of Siemens AG, during the announcement in Erlangen. "The urban development design implements our objective of creating a campus of the future that will benefit our customers and employees, but also the entire area, over the long term," said Kaeser.
- Two-digit million euro order volume, including a 15-year contract for maintenance services and spare parts
- State-of-the-art technology is able to handle up to 100,000 parcels per day
- Completion planned for summer 2016
Siemens has been contracted to design, supply, install and commission an integrated parcel sorting system for the Singapore Post's (SingPost) new Regional eCommerce Logistics Hub. The contract includes 15 years of spare parts supply and maintenance services and has a two digit million order volume. The sorting system is planned to be completed in summer 2016.
- Twelve researchers with more than 900 inventions honored
- Investments in research and development to increase €400 million
In fiscal 2014, Siemens filed 4,300 patent applications – a year-over-year increase of nine percent. In addition, the company intends to boost investments in research and development (R&D) by around €400 million. In fiscal 2014, R&D expenditures totaled roughly €4 billion. Twelve Siemens researchers and developers who together account for more than 900 inventions and 842 granted individual patents played a leading role in the company's success. They were honored by Siemens as Inventors of the Year 2014 in Munich on December 3.
The Supervisory Board of Siemens AG has elected Birgit Steinborn, Chairwoman of the company's Central Works Council, to the position of Deputy Chairwoman of the Supervisory Board. She will succeed Berthold Huber, who has been IG Metall's representative on the Supervisory Board since July 2004 and the Board's Deputy Chairman since January 2009. Huber has announced that he will resign from the Supervisory Board of Siemens AG, effective the end of the Annual Shareholders' Meeting on January 27, 2015. Steinborn will assume the position of Deputy Chairwoman of the Supervisory Board at that time. The employee representatives have requested that Reinhard Hahn be nominated to succeed Huber by court appointment.
The Siemens Managing Board is establishing a Siemens Technology & Innovation Council (STIC). Comprising internationally experienced and respected experts from the research and scientific communities, the Siemens Technology & Innovation Council will closely support the Managing Board in systematically analyzing and monitoring strategic topics in the areas of technology and innovation. The council will focus, in particular, on developments, innovations and technologies that will have an impact on Siemens' business over the next ten years. Peter Gruss has been appointed to head the expert panel. He will also steer its orientation and composition.
- Birgit Steinborn elected Deputy Chairwoman of Supervisory Board
Gerd von Brandenstein, Peter Gruss and Berthold Huber have announced that they will resign from the Supervisory Board of Siemens AG, effective the end of the Annual Shareholders' Meeting on January 27, 2015. As of the spring of 2015, Gruss will head the new Siemens Technology & Innovation Council (STIC) that is being established by Siemens' Managing Board. The council will closely support the Managing Board in systematically analyzing and monitoring strategic topics in the areas of technology and innovation.