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Siemens starts fiscal 2011 with strong growth and record profit

In the first quarter of fiscal 2011, which ended on December 31, 2010, new orders soared to €22.588 billion, a 19 percent increase over the comparable period a year earlier. Revenue increased 12 percent to €19.489 billion. Benefiting from positive currency translation effects in the reporting period, new orders and revenue exceeded prior-year levels for the third successive quarter. The company’s book-to-bill ratio in the first quarter was 1.16. At the end of December 2010, the combined order backlog of Siemens’ three Sectors totaled €92 billion, compared to €87 billion at the end of September 2010.
All three Siemens Sectors – Industry, Energy and Healthcare – contributed to order and revenue growth. At the Industry Sector, new orders rose 22 percent and revenue 13 percent year-over-year, led by the Industry Automation and Drive Technologies Divisions. At the Energy Sector, new orders climbed 27 percent and revenue 14 percent, with the surge in new orders driven primarily by the Fossil Power Generation Division and the increase in revenue growth especially by the Renewable Energy Division.
At the Healthcare Sector, new orders increased ten percent and revenue 11 percent compared to the first quarter a year ago. Due to the Sector’s reorganization, financial reporting has changed since the beginning of fiscal 2011. Siemens will now report the key figures for the Healthcare Sector in total and for the Diagnostics Division – which was formed from the acquisitions Dade Behring, Bayer Diagnostics and DPC – additionally.
Siemens’ operating strength was also reflected in its first-quarter profit. Total Sectors profit increased six percent year-over-year to €2.229 billion. This figure includes a burden of €261 million related to the special employee remuneration announced in November 2010. This amount was allocated to the Sectors, after having been accrued centrally in the fourth quarter of fiscal 2010, but had no effect on total profit in the first quarter of fiscal 2011. This burden and a decline in Healthcare profit were more than offset by substantial increases in profit at the Industry and Energy Sectors. Income from continuing operations rose 17 percent to €1.787 billion, a new record. This figure includes burdens of €136 million due to a goodwill impairment at Siemens IT Solutions and Services. In December 2010, Siemens announced plans to merge this business into Atos Origin.
With continuing improvement in its markets, Siemens expects organic order intake to show a clear increase compared to fiscal 2010. Supported also by its already strong order backlog, the company expects revenue to return to moderate organic growth. It also anticipates income from continuing operations to exceed reported fiscal 2010 results by at least 25 percent to 35 percent. This outlook excludes effects that may arise from legal and regulatory matters.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world’s largest provider of environmental technologies, generating some €28 billion – more than one-third of its total revenue – from green products and solutions. In fiscal 2010, which ended on September 30, 2010, revenue totaled €76 billion and net income €4.1 billion. At the end of September 2010, Siemens had around 405,000 employees worldwide. Further information is available on the Internet at:

This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on the current expectations and certain assumptions of Siemens’ management, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect Siemens’ operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. In particular, Siemens is strongly affected by changes in general economic and business conditions as these directly impact its processes, customers and suppliers. This may negatively impact our revenue development and the realization of greater capacity utilization as a result of growth. Yet due to their diversity, not all of Siemens’ businesses are equally affected by changes in economic conditions; considerable differences exist in the timing and magnitude of the effects of such changes. This effect is amplified by the fact that, as a global company, Siemens is active in countries with economies that vary widely in terms of growth rate. Uncertainties arise from, among other things, the risk of customers delaying the conversion of recognized orders into revenue or cancelling recognized orders, of prices declining as a result of continued adverse market conditions by more than is currently anticipated by Siemens’ management or of functional costs increasing in anticipation of growth that is not realized as expected. Other factors that may cause Siemens’ results to deviate from expectations include developments in the financial markets, including fluctuations in interest and exchange rates (in particular in relation to the U.S. dollar), in commodity and equity prices, in debt prices (credit spreads) and in the value of financial assets generally. Any changes in interest rates or other assumptions used in calculating obligations for pension plans and similar commitments may impact Siemens’ defined benefit obligations and the anticipated performance of pension plan assets resulting in unexpected changes in the funded status of Siemens’ pension and other post-employment benefit plans. Any increase in market volatility, further deterioration in the capital markets, decline in the conditions for the credit business, continued uncertainty related to the subprime, financial market and liquidity crises, or fluctuations in the future financial performance of the major industries served by Siemens may have unexpected effects on Siemens’ results. Furthermore, Siemens faces risks and uncertainties in connection with: disposing of business activities, certain strategic reorientation measures; the performance of its equity interests and strategic alliances; the challenge of integrating major acquisitions, implementing joint ventures and other significant portfolio measures; the introduction of competing products or technologies by other companies or market entries by new competitors; changing competitive dynamics (particularly in developing markets); the risk that new products or services will not be accepted by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations, legal proceedings and actions resulting from the findings of, or related to the subject matter of, such investigations; the potential impact of such investigations and proceedings on Siemens’ business, including its relationships with governments and other customers; the potential impact of such matters on Siemens’ financial statements, and various other factors. More detailed information about certain of the risk factors affecting Siemens is contained throughout this report and in Siemens’ other filings with the SEC, which are available on the Siemens website,, and on the SEC’s website, Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens neither intends to, nor assumes any obligation to, update or revise these forward-looking statements in light of developments which differ from those anticipated.
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Alexander Becker

Siemens AG

Wittelsbacherplatz 2
80333 Munich

+49 (89) 636-36558