Siemens Reports Another Strong Quarter

MUNICH, Germany — Siemens released financial results for Q2 FY 2017 on May 4th.

“We delivered another strong team performance and continue to outperform the markets. In the second half of the fiscal year, we will focus on duly integrating Mentor Graphics and on a successful start of Siemens Gamesa Renewable Energy, while keeping a close eye on our operational performance. And there is more work to do.” — Joe Kaeser, President and Chief Executive Officer of Siemens AG

Highlights:

• Revenue rose 6% compared to Q2 FY 2016, to $22.1 billion, including a strong performance by short-cycle businesses, and orders were $24.7 billion, up 2% despite a high basis of comparison including orders totaling $3.4 billion in Q2 FY 2016 in Egypt; the book-to-bill ratio was 1.12
• On a comparable basis, excluding currency translation and portfolio effects, revenue rose 5% and orders increased 1%
• Strong margin expansion in nearly all industrial businesses due to strong operational execution, and a $151 million positive effect from pension plan amendments, took Industrial Business profit margin up to 12.1%
• Industrial Business profit climbed 18% year-over-year, to $2.7 billion
• Net income was level at $1.6 billion, despite a higher income tax rate and a lower contribution to net income from discontinued operations; basic earnings per share (EPS) of $1.96 compared to $1.95 in Q2 FY 2016
• At the end of Q2 FY 2017, Siemens acquired all shares of Mentor Graphics Corporation (Mentor Graphics) and, at the beginning of Q3 FY 2017, closed the merger of Siemens’ wind power business with Gamesa Corporación Tecnológica S.A. (Gamesa)

Ralf Thomas, Chief Financial Officer, stated: “We delivered another strong team performance and continue to make progress on all aspects of Vision 2020 to create value. Our strong operational performance is again a clear proof point on this part of building a better and highly adaptive company. At the same time, we continued to make targeted investments in research and development, feet on the street, and digital offerings always with a key focus on customer needs. Our goal is to secure profitable growth also in the future.

“In addition, we constantly improve efficiency and productivity across all functions supported by our team that is eager to learn, change and deliver.”

The full results can be downloaded via pdf here.