Earnings Release and Financial Results Q3 FY 2016: Strong execution drives growth and profitability – earnings outlook raised
04 August 2016
"We are making good progress with execution of Vision 2020 and in the third quarter again achieved convincing results, particularly compared to the market. I am proud of my global team which delivered excellent performance, especially with regard to growth, in an increasingly difficult market environment."Joe Kaeser, President and Chief Executive Officer of Siemens AG
Profit Industrial Business: improvements in a majority of the Divisions, particularly in Power and Gas, Energy Management and Wind Power and Renewables; market headwinds still ongoing for Process Industries and Drives
Income from continuing operations rose on higher Industrial Business profit, partly offset by factors outside Industrial Business. These factors included a negative swing related to major asset retirement obligation, due primarily to lower interest rates; an increase in interest expenses, resulting from issuance of debt; and higher income tax expenses, due mainly to a low basis of comparison in Q3 FY 2015
Increase in Free cash flow from Industrial Business, to €1.914 billion from €1.157 billion in Q3 FY 2015,driven by Power and Gas and Energy Management due mainly to positive effects from working capital management
We raise our previous expectation for basic EPS from net income in the range of €6.00 to €6.40 to the range of €6.50 to €6.70. We continue to expect for fiscal 2016 moderate revenue growth, net of effects from currency translation. We continue to anticipate that orders will materially exceed revenue for a book-to-bill ratio clearly above 1. For our Industrial Business, we continue to expect a profit margin of 10% to 11%.
This outlook exludes charges related to legal and regulatory matters.