Siemens enjoys turnaround at infrastructure and cities ops
Siemens (SI) expects profit margins at its struggling infrastructure and cities (I&C) division to rise to about 7% of sales this FY from 1.6% a year earlier.
The improvement in the performance of the business is due to restructuring and a clearer focus on high-margin contracts.
There has been much speculation that newish CEO Joe Kaeser could restructure or even break up the I&C amid a series of setbacks, such as a two-year delay to the delivery of high-speed trains to Germany's national railway company.
Siemens' (SI) FQ3 net income +43% to €1.1B, boosted by a positive profit contribution from discontinued operations, particularly Osram, which has been spun off.
Revenue -2% to €19.25B.
Orders +19% to €21.1B.
Order backlog reaches a new record of €102B; book-to-bill ratio 1.1.
Sectors profit fell primarily due to Q3 charges of €436M for the "Siemens 2014" productivity improvement program.
Income from continuing -13% to €1B.
Basic net EPS rises to €1.27 from €0.85 a year earlier.
Free cash flow from continuing ops increases to €973M from €899M.
For FY 2013, Siemens expects: income from continuing ops of €4B, including the solar business and NSN; moderate organic revenue decline, order growth; charges of €1B for Siemens 2014 program. (previous) (PR)
Siemens' (SI) FQ2 net income from continuing operations of €982M (+0.4% Y/Y) misses estimates . Revenue falls 6.7%, coming in at €18B. The company cuts its full year guidance, saying net income will be in the low end of its range (€4.5-5B) — a weak economic environment and charges associated with ill-fated solar and wind projects were cited as reasons for the lowered profit projections.
More on Siemens (SI) FQ1: order intake -3.3% to €19.1B vs consensus of €18.9B. Forecasts that FY profit will drop to €4.5-5B from €5.18B last year, due to €1B of costs from €6B savings program. Profit across four core business sectors +4.4% to €1.7B: energy +12%, healthcare +38%, industry -10%, infrastructure & cities -36%. However, warns of weak industrial demand while solar-energy unit loses €150M. Shareholders due to vote today on spinning off Osram. Shares -1% in Frankfurt.
Siemens (SI): FQ1 net income from continuing operations -1.4% to €1.3B, as reported in the press, and vs consensus of €1.18B. Revenue +1.5% to €18.1B, a bit above the speculated figure of €17.9B but in line with Street predictions. "There was good profitability in the healthcare and energy sectors," says Commerzbank analyst Ingo-Martin Schachel, although "the short-cycle segments in the industry sector were relatively weak." (PR)
Siemens' (SI) FQ1 net profit from continuing operations was reportedly little changed at €1.3B, above consensus of €1.14B, while revenue was also flat at €17.9B and missed forecasts of €18.1B. Earnings were hurt by a triple-digit million euro hit following delays in the delivery of high-speed trains to Deutsche Bahn, and by Siemens' exit from its solar business. New orders were above sales. Shares -1.6% premarket.
More on Siemens (SI) FQ4: Expects net profit from continuing ops to fall to €4.5B-€5B in FY 2013 from €5.18B last year, due to about €1B of costs from its savings program and the effect of plans to change its accounting standards. Agrees to acquire Belgian industry software maker LMS International for €680M and sell water businesses with revenue of €1B a year.
Siemens (SI): FQ4 net profit from continuing ops -2% to €1.48B vs consensus of €1.34B, with earnings hurt by a €327M hit at its oil and gas business in Iran because of sanctions. Revenue +7% to €21.7B. Plans to slash €6B in costs by end of FY 2014 and increase operating margins from four core businesses to at least 12% from 9.5% last year. (PR)
Siemens (SI) reports FQ3 net income from continuing operations of €1.23B, missing expectations of €1.4B. Sales rose 10% to €19.5B. Company sees heightened difficulty in hitting its profit target of €5.2B-5.4B this year. "The deceleration of the world economy has increased in the past few months. We see growing reluctance among our customers regarding capital expenditures and stronger economic headwinds, especially in our industrial short-cycle business." (PR .pdf)
Siemens (SI) confirms it won't meet its full-year targets following a series of write-downs on a major offshore wind project and its JV with Nokia, and can't rule out further writedowns at the wind power ops. FQ2 profit of €981M is below consensus. FY profit guidance lowered to €5.2B-5.4B from €6B.
Siemens (SI -0.1%) is set to abandon its full-year goal of flat net profit from continuing ops of €6B, due to losses at its offshore wind ops, the FT Deutschland reports. Provisions for the business in Q2 will stay unchanged from Q1 at €203M.
Siemens (SI) reports FQ1 net income from continuing operations fell 27% to €1.36B ($1.8B), short of the €1.47B consensus. New orders dropped 5% to €19.81B, sales advanced 2% to €17.9B; both figures below consensus. CEO Peter Loescher: The debt crisis is taking a toll, but an H2 recovery is expected. Shares -3.5% in Germany. (PR)
Siemens (SI):FQ4 net profit €1.17B ($1.58B) vs. €467M loss a year ago, when it had a €1B charge. Revs +4.9% to €20.35B. Forecasts €6B profit from continuing ops in FY 2012 vs. €7B in FY 2011. Expects sales to grow moderately and orders to be significantly higher than revs. To pay €3/share dividend. Shares -1.2% in Frankfurt. (PR)