Twice-raised guidance exceeded - historic success through strong team performance
»The fiscal year just ended was one of the strongest in the history of our company. Setting aside portfolio divestments, it was actually the best. We worked hard and I am proud of what our global team has achieved. In fiscal 2017 we will continue working with full concentration on the execution of Vision 2020,« said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Fiscal 2016Orders and revenue both 5% higher compared to fiscal 2015, at €86.5 billion and €79.6 billion, respectively, for a book- to-bill ratio of 1.09; excluding currency translation effects, orders and revenue both up 6%
Industrial Business profit up 13%, at €8.7 billion; strong increases in Power and Gas, Energy Management, and Wind Power and Renewables and growth in other Divisions and Healthineers, more than offsetting a substantial decline in Process Industries and Drives
Industrial Business profit margin reached 10.8%, with all industrial businesses except Process Industries and Drives within their target ranges
Net income of €5.6 billion reflects the strong operating performance; fiscal 2015 net income of €7.4 billion included
€3.0 billion related to divestments of the hearing aid business and Siemens' stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH)
Basic earnings per share (EPS) of €6.74, above the raised target range announced in the third quarter; basic EPS of €8.84 a year earlier included €3.66 related to the sale of the hearing aid business and the BSH stake
Siemens proposes a dividend of €3.60 per share
Q4 Fiscal 2016Fourth-quarter orders of €20.3 billion, 14% lower than the prior-year period which included a substantially higher volume from large orders; excluding the change from large orders, orders rose moderately
Revenue 3% higher, at €22.0 billion, for a book-to-bill ratio of 0.93; excluding currency translation effects, revenue up 5%, orders down 13%
Industrial Business profit remains strong at €2.4 billion, with a 10.9% profit margin; increases in most Divisions largely offset by a negative swing in Process Industries and Drives due to previously announced capacity adjustments
Net income up 18%, at €1.2 billion; basic earnings per share (EPS) up 21%, at €1.42 compared to €1.18 in Q4 FY 2015
siemens.com
SiemensQ4 | % Change | |||
(in millions of €) | FY 2016 | FY 2015 | Actual | Comp. |
Orders | 20,326 | 23,716 | (14)% | (13)% |
Revenue | 21,953 | 21,328 | 3% | 5% |
Profit Industrial Business | 2,448 | 2,447 | 0% | |
therein: severance | (333) | (264) | ||
Profit margin Industrial Business | 10.9% | 11.3% | ||
excl. severance | 12.4% | 12.5% | ||
Income from continuing operations | 1,182 | 1,001 | 18% | |
therein: severance | (349) | (343) | ||
Net income | 1,176 | 1,000 | 18% | |
Basic earnings per share (in €) | 1.42 | 1.18 | 21% | |
Free cash flow (continuing and discontinued operations) | 3,570 | 4,375 | (18)% | |
ROCE (continuing and discontinued operations) | 11.9% | 10.7% |
Currency translation effects took one percentage point from order and two percentage points from revenue development; portfolio effects had a minimal effect on volume development year-over-year
Orders down due to a lower volume of large orders, particularly in Power and Gas and Wind Power and Renewables; orders rose moderately excluding the change from large orders
Industrial Business order backlog was €113 billion
Revenue increase in all industrial businesses except Process Industries and Drives, and driven by double-digit growth in Power and Gas, due mainly to a sharp increase in Egypt
Profit Industrial Business: increases in most of the Divisions offset by Process Industries and Drives, where profit turned negative due mainly to severance charges related to previously announced capacity adjustments
Income from continuing operations: improvement due mainly to Centrally managed portfolio activities, which benefited from a strong positive swing relating to a major asset retirement obligation and also included a lower loss from at- equity investments
Decrease in Free cash flow from Industrial Business, to €4.034 billion from a high level of €4.952 billion in Q4 FY 2015. Free cash flow in the prior-year period benefited from significantly higher project prepayments at Power and Gas
ROCE increase driven by higher net income
Underfunding of Siemens' pension plans as of September 30, 2016: €12.8 billion (June 30, 2016: €12.7 billion)
Q4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
3,218
5,297
(39)%
(38)%
Revenue
4,545
4,118
10%
12%
Profit
509
418
22%
therein: severance
(23)
(91)
therein: integration costs Dresser-Rand
(14)
(19)
Profit margin
11.2%
10.2%
excl. severance and integration costs
12.0%
12.8%
Orders came in substantially lower due to a smaller volume from large orders compared to Q4 FY 2015, when the Middle East recorded several large orders including in Egypt; the book-to-bill ratio dropped below 1 for the current quarter
Revenue growth driven by strong execution from the backlog particularly including large orders in Egypt; increases in all three reporting regions
Profitability influenced by a less favorable revenue mix, including a lower share from the service business; the current period includes lower severance as well as positive effects totaling €70 million from measurement of inventories; Q4 FY 2015 included a positive effect of €55 million related to a project settlement
Overcapacities continue to create an aggressive competitive environment, resulting in increased price pressure
Wind Power and RenewablesQ4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
1,205
2,716
(56)%
(56)%
Revenue
1,597
1,504
6%
11%
Profit
132
72
84%
therein: severance
(2)
(3)
Profit margin
8.3%
4.8%
excl. severance
8.4%
5.0%
Energy ManagementQ4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
3,376
3,290
3%
4%
Revenue
3,573
3,473
3%
5%
Profit
299
259
15%
therein: severance
(52)
(51)
Profit margin
8.4%
7.5%
excl. severance
9.8%
8.9%
After very strong order growth in the first nine months, lower volume from large orders in the fourth quarter; Q4 FY 2015 included a €1.2 billion order for an offshore wind-farm, including service, in Germany and several large orders in the onshore business
Clear revenue increase in the offshore new unit business despite negative effects from currency translation
Continued strong profitability driven by higher revenue, improved productivity in production and installation, increased capacity utilization, and a larger contribution from the service business
Increase in orders mainly due to growth in the high voltage products and digital grid businesses
Revenue up mainly due to growth in the solutions and transformer businesses; increase in all three reporting regions
Robust profit development compared to the strong year-end quarter a year earlier, including profitability improvements in a majority of businesses led by the high voltage products and solutions businesses
Q4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
1,770
1,662
7%
7%
Revenue
1,698
1,679
1%
2%
Profit
196
222
(12)%
therein: severance
(10)
(7)
Profit margin
11.5%
13.2%
excl. severance
12.1%
13.6%
Continued strong order growth driven mainly by contract wins in the solutions business for energy efficiency projects in the U.S.
Revenue growth in Asia, Australia and the Americas
Strong profit contribution in typically robust year-end quarter
MobilityQ4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
2,274
2,387
(5)%
(3)%
Revenue
2,070
1,998
4%
8%
Profit
173
171
1%
therein: severance
(5)
(34)
Profit margin
8.4%
8.6%
excl. severance
8.6%
10.2%
Digital FactoryQ4
% Change
(in millions of €)
FY 2016
FY 2015
Actual
Comp.
Orders
2,700
2,520
7%
7%
Revenue
2,787
2,661
5%
4%
Profit
515
468
10%
therein: severance
(21)
(28)
Profit margin
18.5%
17.6%
excl. severance
19.2%
18.6%
Lower volume from large orders year-over-year; sharp order growth in the Americas due mainly to a contract win worth
€0.4 billion for light rail vehicles in the U.S.
Strongest revenue growth from the rolling stock businesses
Solid project execution resulted in approval of operations and homologation in Germany for the Division's new high-speed train series, the ICE 4, according to the original plan
Profitability impacted by a less favorable revenue mix, due to a larger share from the lower-margin rolling stock business
Broad-based order and revenue growth; strongest contributions from the product lifecycle management (PLM) software business, which benefited from the acquisition of CD-adapco, and from the factory automation business
Orders and revenue up in all regions, particularly in China
Business performance of CD-adapco ahead of plan
Profit at record high driven by the PLM and factory automation businesses
Siemens AG published this content on 10 November 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 10 November 2016 06:09:08 UTC.
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