We expect global macroeconomic development to remain subdued in fiscal 2020, with risks particularly related to geopolitical and geoeconomic uncertainties. We assume a moderate decline in market volume for our short-cycle businesses. Given the foregoing, we expect the
Siemens Group to again achieve moderate growth in comparable revenue, net of currency translation and portfolio effects, and a book-to-bill ratio above 1.
Digital Industries expects fiscal 2020 comparable revenue to remain level compared to the prior-year, outperforming the broader market, despite continued weakness in its most important short-cycle markets, particularly the automotive and machine tool industries. Adjusted EBITA margin is expected at 17% to 18%.
Smart Infrastructure expects to achieve moderate comparable revenue growth in fiscal 2020, driven by its longer-cycle solutions and service business, even as its short-cycle industrial products business faces headwinds from a market slowdown. Adjusted EBITA margin is expected at 10% to 11%.
Economic cycles have limited impact on the markets for
Mobility, which anticipates mid-single-digit comparable revenue growth in fiscal 2020 driven by its rolling stock business, which ramped up several large rail projects toward the end of fiscal 2019. Adjusted EBITA margin is expected at 10% to 11%.
While energy markets are assumed to remain challenging with some signs of stabilization,
Gas and Power expects a moderate comparable revenue growth particularly including execution on its large order backlog. Adjusted EBITA margin is expected at 2% to 5%.
As previously announced, we plan to carve out
Gas and Power and to contribute our 59% stake in
Siemens Gamesa Renewable Energy (SGRE) to create a new entity, Siemens Energy. For this entity, we plan a spin-off and public listing before the end of fiscal 2020, with Siemens Energy becoming part of discontinued operations prior to the spin-off. We expect this to result in substantial positive effects within discontinued operations, including a substantial gain at spin-off, which cannot yet be reliably quantified.
For our EPS guidance we assume these positive effects will offset carve-out costs and tax expenses related to the spin-off and Group-wide severance charges for the fiscal year. Taken together with our previously mentioned expectations for fiscal 2020, we expect this to result in basic earnings per share (EPS) from net income in the range from €6.30 to €7.00 compared to €6.41in fiscal 2019.
This outlook excludes charges related to legal and regulatory matters.
Earnings Release and Financial Results Q4 FY2019
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