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.
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%.
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.
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.
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.
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.