Munich The Siemens Group started the new fiscal year with high growth rates. CEO Roland Busch said on Thursday before the Annual General Meeting: “Our results impressively show that we are pioneers in accelerating digitization and sustainability.”
The increases were successful, although Siemens is also increasingly feeling the effects of the problems in the supply chains. The group admitted “delays in the delivery of some products to customers”. We are working “at full speed to optimize deliveries and to master these challenges together with our customers”.
So far, the global challenges have not reflected in the numbers. The technology group’s sales rose by a comparable nine percent to EUR 16.5 billion in the first quarter of 2021/22, which ended on September 30.
Incoming orders increased by 42 percent to 24.2 billion euros. Siemens also attributes the sometimes unusually high increases to “anticipated procurement measures by customers”.
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There has also been progress in terms of profitability. The operating result of the divisions increased by twelve percent to almost 2.5 billion euros. This corresponded to a return of 15.7 percent. On average, analysts had expected sales of a good 15.1 billion euros and an operating result of 2.3 billion euros.
Busch confirmed the forecast for the full year. Siemens expects sales growth in the mid-single-digit percentage range and an increase in earnings per share before special items from EUR 8.23 to EUR 8.70 to EUR 9.10.
Where the demand is particularly high
All business areas were able to increase sales, incoming orders and earnings. Demand was particularly high in the core business of digital industries. The division was able to increase incoming orders by a comparable 67 percent to 7.1 billion euros. Sales grew by eleven percent to 4.3 billion euros. The margin fell slightly to 21.8 percent.
For comparison: The competitor Rockwell Automation had increased sales in the first quarter of 2021/22 (September 30) by almost 17 percent to almost 1.9 billion dollars. The operating margin was 19.1 percent.
Siemens’ software sales grew somewhat more slowly by a comparable seven percent to 1.1 billion euros. The group attributed this to the switch to a “Software as a Service” rental model.
According to the previously published manuscript, in his speech Busch reaffirmed the company’s ambitious digital growth targets. “We connect the real world with the digital world like no other company.” The digital portfolio, which recently generated sales of around 5.3 billion euros, is expected to grow by an average of ten percent over the next five years.
Initially, growth will be somewhat slower due to the changeover to “Software as a Service”. “Then, after fiscal year 2023, faster and faster.”
This is how Siemens compares to the competition
Siemens also fared well compared to its traditional competitors. For example, the Swiss ABB Group increased sales in the fourth calendar quarter by a comparable eight percent to $7.6 billion. The operating margin was 13.1 percent.
The former archrival General Electric has lost importance as a competitor for Siemens in recent years – especially after the spin-off of energy technology. The fourth quarter showed that the groups are continuing to diverge.
Sales at GE fell by a comparable three percent to $19.5 billion, the adjusted operating margin was 8.1 percent. The Americans also want to split up. “We’re actually already two steps ahead,” commented Siemens CEO Busch in the fall.
Siemens had announced further portfolio sales the previous evening. The postal and parcel business of Siemens Logistics goes to the technology group Körber for 1.15 billion euros. The division recently achieved sales of around 500 million euros.
Siemens is also exiting the electric motor joint venture with Valeo. The French partner takes over the Siemens shares. The technology group put the positive earnings effect at around 300 million euros in the current quarter.
Both businesses had long since ceased to be part of Siemens’ core business. With the sales, the profile as a focused technology group is further sharpened, said Busch.
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