Siemens - 1st quarter 2017
'Digital Factory' division stands out
Siemens CEO Joe Kaeser looked back on a strong first quarter at the 2017 Annual Shareholders' Meeting: although order intake fell, earnings exceeded the company's own expectations. The 'Digital Factory' division contributed to this in particular.
Specifically, Siemens was able to increase revenue in the industrial business by 3% on a like-for-like basis (adjusted for currency translation and portfolio effects) in the first quarter of 2017 compared to the same period of the previous year. However, order intake fell by 14% on a comparable basis. One of Kaeser's reasons for the decline is that the same quarter of the previous year included a higher volume of major orders. Nevertheless, order intake continues to exceed sales revenue.
Kaeser is particularly pleased that the margin in most industrial businesses increased considerably - across all divisions it now stands at 13.0%. Compared to the same period last year, earnings rose by 26% to 2.5 billion euros; profit after tax grew by 25% to 1.9 billion euros.
Looking at the year as a whole, Siemens continues to expect headwinds for economic growth and the investment climate due to the increasingly complex geopolitical environment and consequently expects sales growth to remain low. As far as earnings are concerned, however, the Group is raising its previous forecast for the margin in the industrial business from 10.5 to 11.5% to 11 to 12% following the strong start to the fiscal year.
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