The CEO is making progress in converting the traditional group into an IT company.
(Photo: Lennart Preiss/Siemens AG)
Munich Despite the global upheaval, Siemens achieved a record operating profit of more than ten billion euros for the first time in the past fiscal year. Siemens CEO Roland Busch said on Thursday in Munich: “The high demand for our hardware and software offerings continues, including higher than expected sales growth in the digital business.” He is also confident for the current fiscal year.
Since the spin-off of the low-margin energy technology, Siemens has increasingly seen itself as an IT and digital group. Sales in the new structure increased in 2021/22 (September 30) by a comparable eight percent to almost 72 billion euros.
On this basis, growth in the fourth quarter was twelve percent. The operating result in the industrial business improved by 17 percent to 10.3 billion euros for the year as a whole. That corresponded to a margin of a good 15 percent.
However, Siemens cannot get rid of the past entirely. Due to a write-down on the 35 percent stake in the loss-making Siemens Energy, net profit fell by a good third to 4.4 billion euros. Nevertheless, the dividend should increase from EUR 4.00 to EUR 4.25.
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With the results, Siemens was partly above the expectations of analysts, who had expected an average growth in sales of around seven percent and an operating profit of almost ten billion euros.
Confident for the new financial year
Busch is also confident overall for the new 2022/23 financial year. Siemens expects sales growth of a comparable six to nine percent. Earnings per share before special effects should be between 8.70 and 9.20 per share. In the past financial year, this value was EUR 5.47 due to depreciation, compared to EUR 8.32 in the previous year.
With the results, Siemens was partly above the expectations of analysts.
(Photo: IMAGO/imagebroker)
The competition had also developed well recently. ABB increased sales in the first nine months of the calendar year by a comparable ten percent to $21.6 billion, with growth amounting to 18 percent in the third quarter.
Schneider Electric increased its revenues in the first nine months on an organic basis by around eleven percent to $24.9 billion. From July to September, sales increased by twelve percent.
One of Siemens’ main competitors is Rockwell Automation. According to information from the Handelsblatt, Siemens has long been pursuing the plan to attack Rockwell’s strong position in the USA in sectors such as automotive and aerospace.
>> Read here: Industrial Metaverse – “We need to reprogram the machines much faster”
Rockwell was able to increase sales in the 2021/22 fiscal year (September 30) by a comparable eleven percent to $ 7.8 billion. In the fourth quarter, growth was more than 20 percent. The operating margin for the year as a whole was around 20 percent.
More: How Siemens wants to massively expand its China business with the Marco Polo secret project.