Siemens' revenue growth continues in first quarter of fiscal 2012
Debt crisis leaves mark on real economy
In the first quarter of fiscal 2012, which ended on December 31, 2011, new orders declined five percent year-over-year to €19.8 billion. In the prior-year period, Siemens booked several major orders. Revenue, on the other hand, increased two percent to €17.9 billion. The book-to-bill ratio for the first quarter was 1.11. The order backlog reached €102 billion. Siemens also invested in innovation and growth: the number of employees worldwide rose in the first quarter by about 3,000, roughly a third of whom work in research and development.
For the four Sectors Energy, Healthcare, Industry and Infrastructure & Cities, the picture was mixed. In the Energy Sector, new orders were down 11 percent to €7.2 billion, and revenue increased eight percent to €6.2 billion. While new orders in the area of renewable energies rose by nearly two-thirds, orders in the Fossil Power Generation Division declined 30 percent after the major orders of the prior-year period. The Healthcare Sector reported new orders of €3.3 billion, a four percent increase year-over-year. Revenue development at the Sector was stable. In the Industry Sector, new orders totaled €4.9 billion, a slight decline of two percent. However, the Sector had profited from major orders in the comparable prior-year period - above all, at the Drive Technologies Division. Industry Sector revenue climbed five percent to €4.7 billion. In the new Infrastructure & Cities Sector, new orders and revenue were below the comparable prior-year figures. Here, too, there had been major orders in the prior year - for example, the Eurostar contract.
Profits were impacted by delays related to the approval process for connecting offshore wind turbines to power grids, mainly in Germany. Due to this factor, the Energy Sector's Power Transmission Division incurred project charges of €203 million. The Renewable Energy businesses posted a loss of €48 million due primarily to higher R&D expenses, costs related to the expansion of the business in a highly competitive environment, increased price pressure and a less favorable revenue mix. In the Healthcare Sector, profit was slightly below the comparable prior-year figure. In the Industry Sector, profit declined due to a less favorable product mix and higher operating costs resulting from growth-related investments. In the new Infrastructure & Cities Sector, delays related to the approval of Siemens' Velaro D trains had a negative impact on profit. The cause here was the previously reported difficulty of a foreign supplier to deliver key components for the multisystem capability that will enable the trains to operate between Germany and France. Total Sectors profit declined 23 percent year-over-year to €1.6 billion. Income from Siemens' continuing operations was down 27 percent overall to roughly €1.4 billion.
About Siemens AG
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the fields of industry, energy and healthcare as well as providing infrastructure solutions, primarily for cities and metropolitan areas. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world's largest provider of environmental technologies. Around 40 percent of its total revenue stems from green products and solutions. In fiscal 2011, which ended on September 30, 2011, revenue from continuing operations totaled €73.5 billion and income from continuing operations €7.0 billion. At the end of September 2011, Siemens had around 360,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: www.siemens.com.