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News16 May 2024Siemens AGSiemens Korea, Seoul

[Global News] Solid second-quarter performance – Outlook confirmed

Siemens delivered solid performance in the second quarter, successfully meeting the high demand for digitalization and sustainability technology. Notably, the industrial software business showed strong growth with particularly high demand in the semiconductor industry. Demand from customers for the construction of data centers also showed strong momentum. Currently muted demand in the short-cycle automation business at Digital Industries, particularly in China and Europe, was largely offset by strong revenue development at Smart Infrastructure and Mobility. In addition, Siemens took a key step in focusing its portfolio with the sale of Innomotics to KPS Capital Partners for €3.5 billion.

In the second quarter, order development was strongly influenced by the very high basis of comparison at Mobility, which included a €2.9 billion order for locomotives and associated maintenance in India in Q2 FY 2023. Despite a decline in the automation businesses at Digital Industries, order growth for the other industrial businesses showed a double-digit increase, particularly at Smart Infrastructure. Additionally, revenue remained close to the prior year's level. The decline in automation businesses was nearly offset by growth in the other three industrial sectors, with Smart Infrastructure showing the highest increase.

“We continued to benefit from strong demand for digitalization and sustainability during our second quarter, particularly in the data center and semiconductor industries. Siemens proved its resilience with strong revenue performance in Smart Infrastructure, Mobility and industrial software; this nearly offset currently muted demand in Digital Industries’ automation business. With the right strategy, the right technologies and the right team, we are well positioned for profitable growth,” said Roland Busch, President and CEO of Siemens AG.

Financial Highlights:

Second-quarter revenue was nearly unchanged from a year earlier on a comparable basis, excluding currency translation and portfolio effects; comparable orders came in 12% lower than in Q2 FY 2023, which included a sharply higher volume from large orders in Mobility

On a nominal basis, revenue declined 1% to €19.2 billion and orders were down 13% at €20.5 billion; Siemens continued to advance on its growth path, with a book-to-bill ratio of 1.07 and an increase in the order backlog, which reached €114 billion

Profit Industrial Business was €2.5 billion with a profit margin of 14.0%, both close to the prior-year quarter

Net income was €2.2 billion; in Q2 FY 2023, net income of €3.6 billion benefited from a €1.6 billion tax-free gain from reversal of an impairment of Siemens’ stake in Siemens Energy AG; for the current quarter, corresponding basic earnings per share (EPS) were €2.57 and EPS before purchase price allocation accounting (EPS pre PPA) were €2.73