Siemens believes that its business environment will be complex in fiscal 2015, among other things due to geopolitical tensions. The company expects revenue on an organic basis to remain flat year-over-year, and orders to exceed revenue for a book-to-bill ratio above 1. Furthermore, Siemens expects that gains from divestments will enable the company to increase basic earnings per share (EPS) from net income by at least 15% from €6.37 in fiscal 2014. For its Industrial Business, the company expects a profit margin* of 10–11%. This outlook excludes impacts from legal and regulatory matters.
For fiscal 2014, orders reached €78.4 billion and revenue totaled €71.9 billion. On an organic basis, excluding portfolio and currency translation effects, orders as well as revenue rose one percent compared to the prior year. The order backlog was €100 billion at the end of the fiscal year.
Total Sectors profit was €7.3 billion compared to €5.8 billion for the previous year. Net income climbed to €5.5 billion from €4.4 billion a year earlier, due primarily to higher Total Sectors profit. Basic earnings per share were €6.37, compared to €5.08 for the prior year.
In the Energy Sector, organic orders rose four percent. Revenue declined three percent. Profit was roughly €1.6 billion, below the prior-year total of around €2 billion. The Industry Sector posted a five-percent increase in organic orders and a four-percent rise in revenue. Industry delivered the biggest contribution, €2.3 billion, to Total Sectors profit.
In the Infrastructure & Cities Sector, organic orders declined four percent. Revenue grew six percent. Profit was approximately €1.5 billion, substantially higher than the prior-year level of just under €300 million. Organic orders for the Healthcare Sector grew three percent and revenue increased two percent. Profit was around €2 billion, matching the high level reached in the previous year.
Based on the results of fiscal 2014, the Supervisory Board and Managing Board will propose a dividend of €3.30 per share for approval at the Annual Shareholders' Meeting in January 2015. For the future, Siemens is aiming at a dividend payout of 40 to 60 percent of the net income.
* Effective with fiscal 2015, our enhanced profit definition excludes amortization of intangible assets acquired in business combinations.
Further information is available at: www.siemens.com/pressconference