Melbourne, 29 February 2009
Siemens has defied analyst expectations, globally recording a 20% profit increase to $A3.99 billion in fiscal 2009, which ended on 31 December 2008, despite challenging market conditions.
Orders continued to exceed revenue, at €22.220 billion, but declined 8% compared to the record high first quarter a year earlier. Siemens has thus performed significantly better than most of our competitors. New orders are expected to decline this year from 2008, though sales should match or exceed last year's figure.
At the press conference held in Munich, Germany on 27 January 2009, Siemens AG (Germany) CEO Peter Löscher said, “Siemens got off to a good start in fiscal 2009, including better order performance than most of our competitors in the December quarter. Revenue increased strongly, yet orders again came in well above revenue. Total Sectors profit clearly increased year-over-year. Therefore we are sticking to our goals for fiscal 2009, even though reaching them has become more ambitious. While we continue to keep a close eye on market conditions, we are progressing through the year strong, confident and decisive.”
Siemens Ltd. (Australia and New Zealand) Managing Director and Chairman Mr. Albert Goller described some of the major projects within Australia and New Zealand that were contributing to Siemens global success.
“In Australia and New Zealand, Siemens is currently working on such multi-million dollar projects as the turnkey solution for electricity distribution at the new coal export terminal being constructed at Newcastle Port in New South Wales, the supply of turbines for New Zealand’s West Wind Project, and the installation of low nitrous oxide (NOx) burners in Australian power stations,” said Mr. Goller.
“In the past year, we have implemented a range of innovative solutions for customers across our eight solution areas. Examples include the installation of building management systems in 47 fire stations throughout Victoria, enabling remote monitoring and control of all systems and the fastest possible response to emergencies. We also provided an automation solution for the manufacturing plant of a major drug research and development facility, increasing productivity, supplied the world’s latest, open bore MRI system, the MAGNETOM Verio, to Epworth Hospital, and we are extremely proud to have been selected as the sole provider of mammography systems for BreastScreen across Queensland for the next three years.”
Global Results
Revenue and orders increase – Orders remain well above revenue
First-quarter revenue rose to €19.634 billion, a 7% increase compared to the same period a year earlier. Revenue growth was supported strongly by high order growth in the past two fiscal years.
Revenue rose in all three Sectors, led by double-digit growth throughout the Energy Sector. The
Healthcare Sector also posted double-digit growth including new volume from the acquisition of Dade Behring at the Diagnostics Division. On a geographic basis, revenue rose in all three reporting regions of Siemens, with particular strength in the Americas and Asia, Australia.
In an environment of slowing global growth and a worldwide financial crisis, weaker demand was noticeable particularly in the Siemens businesses which are characterized by short cycles. Orders climbed 3% in Healthcare but declined in Industry and Energy. All regions posted lower orders.
Orders however rose 12% in Germany on the strength of a large order for high speed trains at the Mobility Division.
Total Sectors profit rises strongly – compliance expenses fall
Total Sectors profit for the first quarter climbed 20% year-over-year, to €2.005 billion. Energy more than doubled its profit, thus achieving the largest profit increase of all the Sectors. Healthcare increased both its revenue and its profits. Industry made the largest contribution in absolute terms to Total Sectors profit in the first quarter, but saw a decline compared to the prior-year period due primarily to a decline in the industrial automation business.
Income from continuing operations grew to €1.260 billion, up 17% compared to the first quarter a year earlier. Basic EPS on a continuing basis rose to €1.43 from €1.14 in the prior-year period. The major factor in these increases was higher Total Sectors profit year-over-year. Expenses for outside advisors engaged in connection with investigations into legal and regulatory matters totalled €50 million in the first quarter, down from €89 million in the fourth quarter of fiscal 2008.
Net income in the first quarter was €1.230 billion, with a corresponding EPS of €1.40. A year earlier, net income was €6.475 billion and EPS €7.04. The previous year’s figures include approximately €5.4 billion, which primarily resulted from the sale of Siemens VDO Automotive.
Siemens sticks to its income goals for fiscal 2009
Achieving previously announced income targets for fiscal 2009 has become even more ambitious due to market conditions. Total Sectors profit is targeted to reach €8.0 to €8.5 billion in fiscal 2009, provided that customers do not materially slow conversion of booked orders to revenue and pricing does not further diminish due to continued adverse market development. This outlook excludes impacts from legal and regulatory matters. As in the past, Siemens continues to closely monitor global financial and macroeconomic developments and their potential impact on Siemens on a quarterly basis.
Press Conference Recording
A recording of the press conference held in Munich, Germany, on 27 January 2009 at which CEO Peter Löscher and CFO Joe Kaeser discussed the quarterly figures is available on the Internet at: www.siemens.com/pressconference
A video of Chairman of the Supervisory Board Dr. Gerhard Cromme's and CEO Peter Löscher's speeches to the Annual Shareholders' Meeting, also held in Mumich on 27 January 2009 is available on the Internet at: www.siemens.com/pressconference
Disclaimer:
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