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Earnings Release and Financial Results Q1 FY 2016: Strong start into the fiscal year – earnings outlook raised

26 January 2016

  • Major contract wins in Europe and Africa drive first-quarter orders up 27% year-over-year, at €22.8 billion; revenue 8% higher at €18.9 billion, for a book-to-bill ratio of 1.21

  • Excluding currency translation effects, orders 22% higher and revenue up 4%

  • Industrial Business profit climbs 10% year-over-year, to €2.0 billion, including margin expansion; strong increases in Healthcare, Energy Management and Mobility more than offset declines in Digital Factory, Process Industries and Drives and Wind Power and Renewables

  • Net income of €1.6 billion, up 42% from the prior-year quarter which was burdened by factors outside the Industrial Business; basic earnings per share (EPS) of €1.89 compared to €1.30 in Q1 FY 2015

  • We raise our previous expectation for basic EPS from net income in the range of €5.90 to €6.20 to the range of €6.00 to €6.40

"We delivered a strong quarter and are well underway in executing our Vision 2020. Therefore, we will raise our earnings outlook for 2016, even though the macroeconomic and geopolitical developments remain a concern for our markets. We continue to focus on addressing our structural challenges in the company and invest into further developing our markets and strengthening our innovation power."

Joe Kaeser, President and Chief Executive Officer of Siemens AG

  • Currency translation tailwinds added five percentage points to order development and four percentage points to revenue growth; portfolio effects added three percentage points to order growth and four percentage points to revenue development

  • Orders up in all industrial businesses; higher volume from large orders particularly in Power and Gas with a € 1.6 billion order for a power plant in Egypt, in Wind Power and Renewables with a € 1.0 billion order for an offshore wind-farm in the UK, and in Mobility with a number of large contract wins

  • Industrial Business order backlog:€114 billion

  • Double-digit revenue growth in Power and Gas(mainly from portfolio effects), Healthcare and Mobility, which more than offset a significant decline in Wind Power and Renewables

  • Profit Industrial Business: increases in the majority of the Divisions, supported by improvements in cost structure related to executing "Vision 2020"; strongest profit growth in Healthcare and Energy Management, ongoing operational challenges in Process Industries and Drives

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

  • Income for continuing operations rose on higher Industrial Business profit, a positive effect relating to a major asset retirement obligation compared to expenses in the prior year, and lower tax expenses due to release of a deferred tax liability;Q1 FY 2015 was burdened by negative effects related to Corporate Treasury hedging activities

  • Net income: includes €73 million from discontinued operations, primarily related to former Siemens IT Solutions and Services activites

  • Decline in Free cash flow from Industrial Business, to  €68 million from  €588 million in Q1 FY 2015, particularly including effects from timing of payments in large Mobility projects

  • ROCE: increase due to higher net income, partly held back by a substantial increase in average capital employed with the acquisition of Dresser-Rand

  • Underfunding of Siemens' pension plans as of December 31, 2015:  €9.3 billion(September 30, 2015: €9.0 billion);slightly increased due mainly to a lower discount rate assumption

For more information please visit the following links:

Earnings Release and Financial Results

Elisavet-Vasiliki Sachinidou