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Earnings Release and Financial Results Q2 FY 2016: Continuing growth in orders, revenue and profitability

04 May 2016

"We delivered another convincing performance in the second quarter, compared to both the prior year and our industry sector. Despite ongoing challenges in the market environment, we will continue to focus rigorously on profitable growth." 
Joe Kaeser, President and Chief Executive Officer of Siemens AG.

  • Major orders in Egypt and the U.K. drive second-quarter orders up 7% year-over-year, to €22.3 billion; revenue 5% higher at €19.0 billion, for a book-to-bill ratio of 1.17.

  • Excluding currency translation effects, orders 10% higher and revenue up 7%.

  • Industrial Business profit climbs 28% year-over-year, to €2.1 billion, including significant margin expansion, with most industrial businesses contributing to the increase – profit margin Industrial Business at 10.9%.

  • Net income of €1.5 billion came in below the €3.9 billion in Q2 FY 2015 which included €3.0 billion in divestment gains from the sale of the hearing aid business and Siemens' stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH); basic earnings per share (EPS) of €1.78 compared to €4.70 in Q2 FY 2015.

  • Negative currency translation effects took two percentage points from both order and revenue development; portfolio effects added two percentage points to both order and revenue growth.

  • Large orders continued to drive order growth. Power and Gas with orders totaling  €3.1 billion for power plants, including service, in in Egypt; Wind Power and Renewables with a  €1.2 billion order for an offshore wind-farm, including service, in the U.K.

  • Industrial Business order backlog with new high at  €115 billion.

  • Due to ending or easing of sanctions on Iran, Power and Gas was able to recognize revenue of  €174 million and profit of  €130 million which together added 2.8 percentage points to the Division's profit margin and 0.6 percentage points to Industrial Business profit margin.

  • Revenue increase driven by double-digit growth in Power and Gas and in Wind Power and Renewables.

  • Profit Industrial Business: strong improvement in Wind Power and Renewables, increases in the majority of the industrial businesses, particularly Power and Gas and Energy Management; weak demand in commodity-related industries continues to weigh on Process Industries and Drives.

  • Profit development benefited from currency hedging effects, most strongly in Healthcare and Process Industries and Drives.

  • Income from continuing operations included  €226 million in profit from Financial Services; Q2 FY 2015 benefited from a gain of  €1.4 billion from the sale of Siemens' stake in BSH, only partly offset by a loss of  €0.2 billion related to Siemens' stake in Unify Holdings B.V. (Unify) and negative effects related to Corporate Treasury hedging instruments.

  • Net income: sale of remaining financial assets in hearing aid business resulted in a gain of  €60 million within discontinued operations; Q2 FY 2015 included gains from the sale of the hearing aid (€1.6 billion) and hospital information (€0.2 billion) businesses within discontinued operations.

  • Increase in Free cash flow from Industrial Business, to  €1.477 billion from  €749 million in Q2 FY 2015, driven by Wind Power and Renewables, Mobility and Healthcare mainly due to positive effects from working capital management; Q2 FY 2015 was burdened by negative effects related to Corporate Treasury hedging activities.

  • ROCE of 14.9% due to strong Net income, even with substantial increase in average capital employed resulting from acquisition of Dresser-Rand between the periods under review; Q2 FY 2015 included the substantial divestment gains mentioned above.



Elisavet-Vasiliki Sachinidou 

 elisavet.sachinidou@siemens.com