Earnings Release Q3 FY 2018 - Excellent order growth highlights successful third quarter
02 August 2018
"Our global team delivered a strong quarter, highlighted by outstanding order intake, outperforming the market. We diligently address our opportunities and challenges going forward," said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
On a nominal basis, orders climbed 16% to €22.8 billion driven by a higher volume from large orders, while revenue came
in at €20.5 billion, 4% lower than the prior-year quarter due primarily to currency translation effects; the book-to-bill ratio as 1.11
Strong order growth due to a higher volume from large orders in Siemens Gamesa Renewable Energy (SGRE), Power and Gas and Mobility; in addition, higher order intake in nearly all other industrial businesses, led by Digital Factory
Profit Industrial Business: another excellent quarter for Digital Factory, which delivered both the largest profit contribution
and highest profit increase among the industrial businesses, along with a strong performance in other industrial businesses; in contrast, profit in Power and Gas fell sharply due to ongoing adverse market conditions; overall profit and
profitability impacted by negative currency effects particularly at Siemens Healthineers, Energy Management and Process Industries and Drives
We continue to expect basic EPS from net income in the range of €7.70 to €8.00, excluding severance charges. Furthermore we confirm our expectation of modest growth in revenue, net of effects from currency translation and portfolio transactions, and continue to
anticipate that orders will exceed revenue for a book-to-bill ratio above 1 for the full fiscal year. We continue to expect a profit margin of 11.0% to 12.0% for our Industrial Business also excluding severance charges.
This outlook excludes charges related to legal and regulatory matters and potential effects which may follow the introduction of a new strategic program.