Munich, Germany, January 31, 2017
Siemens continues on road to success - earnings outlook raised
»With a strong first quarter and a considerably raised outlook for fiscal 2017, we are sending a clear signal. I am proud of my global Siemens team that has been working hard and has delivered convincing success. We will continue to rigorously execute our strategy program Vision 2020 to even further strengthen our innovation power and customer proximity,« said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Benefiting from a strong performance by short-cycle businesses, revenue up 3% on a comparable basis, excluding currency translation and portfolio effects
Orders 14% below Q1 FY 2016 on a comparable basis; the prior-year quarter included a higher volume from large orders
Order intake continues to exceed revenue resulting in a book-to-bill ratio of 1.02
On a nominal basis, revenue 1% higher at €19.1 billion; orders of €19.6 billion, down 14% compared to the prior-year quarter
Significant margin expansion in most industrial businesses due to strong operational execution, and a €172 million portfolio gain, take Industrial Business profit margin up to 13.0%; Industrial Business profit climbs 26% year-over-year, to
€2.5 billion; Centrally managed portfolio activities posted profit of €0.4 billion
Net income of €1.9 billion, up 25%; basic earnings per share (EPS) of €2.35 compared to €1.89 in Q1 FY 2016
Q1 | % Change | |||
(in millions of €) | FY 2017 | FY 2016 | Actual | Comp. |
Orders | 19,554 | 22,801 | (14)% | (14)% |
Revenue | 19,119 | 18,891 | 1% | 3% |
Profit Industrial Business | 2,514 | 1,990 | 26% | |
therein: severance | (48) | (52) | ||
Profit margin Industrial Business | 13.0% | 10.4% | ||
excl. severance | 13.2% | 10.7% | ||
Income from continuing operations | 1,927 | 1,484 | 30% | |
therein: severance | (63) | (62) | ||
Net income | 1,938 | 1,557 | 25% | |
Basic earnings per share (in €) | 2.35 | 1.89 | 25% | |
Free cash flow (continuing and discontinued operations) | 714 | (728) | n/a | |
ROCE (continuing and discontinued operations) | 18.9% | 16.3% |
Currency translation effects took one percentage point from order and two percentage points from revenue development; portfolio effects had a minimal effect on volume development year-over-year
Compared to strong order intake in Q1 FY 2016, orders down due to a lower volume of large orders
Industrial Business order backlog was €115 billion
Revenue increased in the majority of industrial businesses
Profit Industrial Business: higher profit in nearly all industrial businesses; Digital Factory posted the highest profit and largest increase, benefiting also from a €172 million gain related to the eCar business which was contributed to a joint venture; Healthineers and Power and Gas also contributed substantial profit along with strong earnings growth
Income from continuing operations: higher Industrial Business profit and a pretax profit contribution of €409 million from Centrally managed portfolio activities (CMPA); Q1 FY 2016 benefited from lower tax expenses due to the release of a deferred tax liability
Strong working capital management drives €1.4 billion positive swing in Free cash flow; Free cash flow from Industrial Business increased to €1.286 billion from €68 million in Q1 FY 2016; improvement was due mainly to Energy Management, Mobility and Wind Power and Renewables
Higher net income substantially increased ROCE, despite a moderate increase in average capital employed
Provisions for pensions and similar obligations as of December 31, 2016: €11.1 billion (September 30, 2016: €13.7 billion); decreased significantly mainly due to higher discount rate assumptions
Wind Power and RenewablesQ1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
3,309
5,537
(40)%
(40)%
Revenue
3,895
3,680
6%
7%
Profit
458
349
31%
therein: severance
(1)
(22)
therein: integration costs Dresser-Rand
(5)
(13)
Profit margin
11.8%
9.5%
excl. severance and integration costs
11.9%
10.4%
Q1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
1,436
1,898
(24)%
(24)%
Revenue
1,384
1,197
16%
18%
Profit
111
51
119%
therein: severance
(1)
−
Profit margin
8.0%
4.2%
excl. severance
8.1%
4.3%
Energy ManagementQ1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
2,990
3,500
(15)%
(14)%
Revenue
2,808
2,765
2%
3%
Profit
189
183
3%
therein: severance
(12)
−
Profit margin
6.7%
6.6%
excl. severance
7.2%
6.6%
Lower volume from large orders compared to Q1 FY 2016, which included a €1.6 billion order for the solutions and service businesses in Egypt, and reduced new-unit business in an unfavorable market environment; sharp decline in the region Europe, C.I.S., Africa, Middle East (Europe/CAME) and substantial decline in the Americas
Revenue growth driven by strong execution from the backlog, particularly including large orders in Egypt
Profitability influenced by improved project execution, higher profitability in the service business and lower severance charges
Overcapacities from market weakness continue to create an aggressive competitive environment, resulting in ongoing price pressure
Lower volume from large orders included a €0.7 billion contract win for an offshore wind-farm, including service, in Belgium; Q1 FY 2016 included a €1.0 billion order for an offshore wind-farm, including service, in the U.K.; book-to-bill ratio above 1
Revenue growth in all businesses, most pronounced in the offshore business in Europe
Strong profitability driven by the revenue increase, higher productivity, positive effects related to project execution, higher capacity utilization, and a larger contribution from the service business
Lower volume from large orders; Q1 FY 2016 included a large high-voltage direct current (HVDC) order in Africa won by the transmission solutions business; book-to-bill ratio above 1
Revenue growth with increases in nearly all businesses
Higher profit in a majority of businesses led by the high voltage products and transmission solutions businesses
Q1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
1,715
1,547
11%
11%
Revenue
1,552
1,479
5%
5%
Profit
170
131
29%
therein: severance
(5)
(1)
Profit margin
10.9%
8.9%
excl. severance
11.2%
8.9%
Strong order growth particularly in the solutions business; orders up in all reporting regions, including double-digit increases in Asia, Australia and the U.S.
Robust order intake in recent periods lifted revenue across the businesses and in all reporting regions
Profit growth supported by higher revenue and productivity increases particularly in the product business
Mobility
Q1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
2,151
2,663
(19)%
(17)%
Revenue
1,801
2,044
(12)%
(8)%
Profit
163
193
(15)%
therein: severance
(4)
(3)
Profit margin
9.1%
9.4%
excl. severance
9.3%
9.6%
Digital FactoryQ1
% Change
(in millions of €)
FY 2017
FY 2016
Actual
Comp.
Orders
2,693
2,492
8%
7%
Revenue
2,562
2,465
4%
4%
Profit
668
417
60%
therein: severance
(6)
(6)
Profit margin
26.1%
16.9%
excl. severance
26.3%
17.2%
Despite lower volume from large orders, book-to-bill ratio significantly above 1; the current period included major contract wins in Europe/CAME, most notably a €0.4 billion order for commuter rail in Austria, as well as a contract win in the U.S. for light rail vehicles; Q1 FY 2016 included a large commuter rail contract in Germany and Siemens' largest-ever rail automation order
Decline in revenue particularly in the rolling stock business due to timing factors related to the execution of large rail projects
Profit decline due mainly to lower revenue; solid project execution kept profitability on a high level
Orders and revenue up in all regions including double-digit increases in China; volume growth particularly in the Division's short cycle businesses
Profit and profitability increased significantly in the high-margin short-cycle businesses
Profit included a non-cash gain of €172 million related to the eCar business which the Division contributed to a newly formed joint venture, Valeo Siemens eAutomotive; Siemens' share in the joint venture is reported within CMPA
Siemens AG published this content on 31 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2017 19:16:01 UTC.
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