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Press Release17 May 2023Siemens AGMunich
Outstanding performance continues – Outlook raised again
“Siemens
continues its outstanding performance, delivering several records, including
impressive margin increases and all-time highs in profit for Digital Industries
and Smart Infrastructure, as well as another record in order backlog,” said
Roland Busch, President and CEO of Siemens AG. “Our very strong results show
that we have the right strategy, the right technology, and the right team to
support our customers in becoming more competitive, resilient and sustainable.”
“We have
delivered what we promised: We converted our fantastic revenue growth into high
profit and ultimately into strong free cash flow. That is execution at its
best, giving us the confidence to raise our guidance,”
said Ralf P. Thomas, Chief Financial Officer of
Siemens AG.
Sharp increases in Profit Industrial Business
In
Q2 2023, Siemens increased revenue 15 percent on a comparable basis to
€19.4 billion (Q2 2022:
€17.0 billion). Orders also rose 15 percent on a comparable basis to €23.6
billion (Q2 2022: €21.0 billion), driven primarily by Mobility’s
highest-ever quarterly order intake. The book-to-bill ratio was a strong 1.22. At €105 billion, the order backlog set another record and is of
high quality.
Profit Industrial Business surged 47 percent to €2.6 billion (Q2 2022:
€1.8 billion). At 14.2 percent, the profit margin was 3.2 percentage
points above the level of the prior-year quarter (Q2 2022: 11.0 percent). Net
income nearly tripled to €3.6 billion (Q2 2022: €1.2 billion), benefiting from a
€1.6 billion tax-free gain from the reversal of an impairment of Siemens’ stake
in Siemens Energy AG. Corresponding basic earnings per share before purchase price allocation
accounting were €4.57 (Q2 2022: €1.50), whereby €2.01 were related to the
impairment reversal.
At €2.3
billion, free cash flow all-in at Group level from continuing and discontinued
operations was at an outstanding level (Q2 2022: €1.3 billion).
Industrial Business generated very strong free cash flow of €2.7 billion (Q2
2022: €1.9 billion).
Record quarterly results at Smart Infrastructure and Digital Industries
At
Digital
Industries, revenue rose by a total of 23 percent on a comparable basis to
€5.5 billion, with double-digit revenue growth at all businesses. The strongest
growth contributions came from the automation businesses due to the increased
availability of components and the accelerated conversion of the order backlog.
Orders declined 10 percent on a comparable basis to €5.3 billion and were – as
expected – below the high level of Q2 2022. Profit climbed 57 percent to €1.3
billion, the highest-ever quarterly result, while the profit margin totaled
23.5 percent. Profit and profitability increased at all automation businesses,
supported by higher revenue and a more favorable product mix with an improved
availability of components for high-margin products.
At
Smart
Infrastructure, orders rose 9 percent on a comparable basis to €5.5 billion.
This increase was driven mainly by substantial growth in the electrification
business due to a number of larger contracts from data centers, the
semiconductor industry and power distribution customers. Revenue at all
businesses increased 21 percent on a comparable basis to €4.9 billion. The
electrical products and electrification businesses were the main contributors
to this double-digit revenue growth. Profit climbed 75 percent to €779 million,
while the profit margin totaled €15.9 percent (Q2 2022: 11.1 percent). Both
profit and profitability were at an all-time quarterly high.
At
Mobility,
order intake more than doubled to achieve its highest-ever quarterly level. This
strong increase was driven by a number of large contract wins, including a €2.9 billion
order for locomotives and associated maintenance in India and a
€0.3 billion order for a signaling system and station infrastructure in
Singapore. Revenue rose 33 percent on a comparable basis to €2.7 billion, with
growth contributions from all businesses, led by sharply higher revenue in the
rolling stock business. While profit increased to €247 million, the profit
margin totaled 9.2 percent. Profit and profitability turned positive
compared to Q2 2022, which had been impacted by burdens of €0.6 billion resulting
from the sanctions imposed on Russia.
Outlook raised again
Following the strong first half of fiscal 2023, Siemens
again raises its outlook for the fiscal year.
For the Siemens Group the company now expects
comparable revenue growth, net of currency translation and portfolio effects,
in the range of 9 percent to 11 percent (previously expected at 7 percent to 10
percent) and continues to expect a book-to-bill ratio above 1.
Digital Industries now expects for fiscal 2023 to achieve comparable revenue growth of 17
percent to 20 percent (previously expected at 12 percent to 15 percent). The
profit margin is now expected to be 22.5 percent to 23.5 percent (previously
expected at 20 percent to 22 percent).
Smart Infrastructure now expects for fiscal 2023 comparable revenue growth of 14 percent
to 16 percent (previously expected at 9 percent to 12 percent). The profit
margin is now expected to be 14.5 percent to 15.5 percent (previously
expected at 13.5 percent to 14.5 percent).
Mobility
now expects for fiscal 2023 comparable revenue growth of 10 percent to 12 percent
(previously expected at 6 percent to 9 percent. The profit margin is continued
to be expected in the range of 8 percent to 10 percent.
Siemens now expects this profitable growth of its
industrial businesses to drive an increase in EPS pre PPA to a range of €9.60
to €9.90 (previously expected at €8.90 to €9.40) in fiscal 2023. Including
€2.01 per share in the second quarter of fiscal 2023 resulting from partial
reversal of the previous impairment on Siemens’ stake in Siemens Energy AG, EPS
pre PPA is expected in a range of €11.61 to €11.91.
This outlook excludes burdens from legal and
regulatory matters and material impairments as well as reversals of material
impairments.
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Siemens AG (Berlin and Munich) is a technology company focused on industry, infrastructure, transport, and healthcare. From more resource-efficient factories, resilient supply chains, and smarter buildings and grids, to cleaner and more comfortable transportation as well as advanced healthcare, the company creates technology with purpose adding real value for customers. By combining the real and the digital worlds, Siemens empowers its customers to transform their industries and markets, helping them to transform the everyday for billions of people. Siemens also owns a majority stake in the publicly listed company Siemens Healthineers, a globally leading medical technology provider shaping the future of healthcare. In addition, Siemens holds a minority stake in Siemens Energy, a global leader in the transmission and generation of electrical power.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
In fiscal 2022, which ended on September 30, 2022, the Siemens Group generated revenue of €72.0 billion and net income of €4.4 billion. As of September 30, 2022, the company had around 311,000 employees worldwide. Further information is available on the Internet at www.siemens.com.
Notes and forward-looking statements
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report ( www.siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens that may constitute forward-looking statements. These statements may be identified by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project” or words of similar meaning. We may also make forward-looking statements in other reports, in prospectuses, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks, uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Report on expected developments and associated material opportunities and risks in the Combined Management Report of the Siemens Report ( www.siemens.com/siemensreport), and in the Interim Group Management Report of the Half-year Financial Report (provided that it is already available for the current reporting year), which should be read in conjunction with the Combined Management Report. Should one or more of these risks or uncertainties materialize, should decisions, assessments or requirements of regulatory authorities deviate from our expectations, should events of force majeure, such as pandemics, unrest or acts of war, occur or should underlying expectations including future events occur at a later date or not at all or assumptions prove incorrect, actual results, performance or achievements of Siemens may (negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking statements in light of developments which differ from those anticipated. This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures should not be viewed in isolation or as alternatives to measures of Siemens’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently. Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.