Siemens Exceeds Q3 Expections

MUNICH, Germany — Siemens AG today reported its third-quarter 2021 financial results.

HIGHLIGHTS:

• Orders increased 47% to €20.5 billion [USD $24.7 billion], driven by double-digit growth in all industrial businesses, and revenue rose 24%, to €16.1 billion [USD $19.06 billion], with double-digit growth in a majority of industrial businesses; the book-to-bill ratio was 1.27
• Orders surged 44% on a comparable basis, excluding currency translation and portfolio effects, and revenue climbed 21%
• Adjusted EBITA Industrial Businesses was €2.3 billion [USD $2.72 billion], a 29% increase on strong performances in all industrial businesses, resulting in Adjusted EBITA margin Industrial Businesses of 15.3%
• Net income and basic earnings per share (EPS) rose sharply to €1.5 billion [USD $1.78 billion] and €1.68 [USD $1.99], respectively, due to higher Adjusted EBITA Industrial Businesses and a substantial positive swing within discontinued operations
• Again excellent Free cash flow from continuing and discontinued operations, reaching €2.3 billion [USD $2.72 billion] for the quarter

Siemens is consistently pursuing its goal of accelerated high-value growth. In the third quarter, once again we delivered – with strong and profitable growth in all businesses,” said Roland Busch, President and CEO of Siemens AG. “We’re successfully supporting our customers in their transformation through digitalization, automation and sustainability. And we’re mastering a challenging environment – for example in our supply chains. A big thank you to the global Siemens team for another strong performance.
— Roland Busch, President and Chief Executive Officer of Siemens AG

We are continuing the very positive business development of the first half of the year and are once again delivering strong results despite the continuing challenging environment. The strong performance of our focused technology company was demonstrated in the third quarter by double-digit revenue growth, increased profitability and another strong Free cash flow. Consequently, we are again raising our outlook for fiscal 2021.
— Ralf P. Thomas, Chief Financial Officer of Siemens AG

OUTLOOK

Following our excellent performance in the first nine months of fiscal 2021, we expect our businesses to again deliver a strong close for the full fiscal year. We assume that our businesses do not experience significant supply chain constraints during the remainder of the fiscal year. Given these assumptions, we again raise our outlook for the fiscal year and include in our outlook for net income effects in connection with Siemens Healthineers’ acquisition of Varian Medical Systems, Inc.

We raise our expectation for comparable revenue, net of currency translation and portfolio effects, to growth of 11% to 12% (formerly 9% to 11%). We continue to expect a book-to-bill ratio above 1.

Digital Industries expects comparable revenue to grow in the range of 10% to 12% (formerly 9% to 11%) year-over-year. The expectation for Adjusted EBITA margin continues to be 20% to 21%.

Smart Infrastructure expects to achieve comparable revenue growth of 8% to 9% in fiscal 2021 (formerly 5% to 7%). The expectation for Adjusted EBITA margin continues to be 11% to 12%.

Mobility continues to anticipate mid-single-digit comparable revenue growth and an Adjusted EBITA margin of 9.5% to 10.5% in fiscal 2021.

Based on the results already achieved during the first nine months of fiscal 2021 and the expectations described above, we raise our outlook for net income to the range from €6.1 billion [USD $7.22 billion] to €6.4 billion [USD $7.58 billion] (formerly €5.7 billion to €6.2 billion [formerly USD $6.75 billion to USD $7.34 billion]).

This outlook excludes burdens from legal and regulatory issues.