Siemens Reports Higher Profits and Raises Its Forecast

Business is booming at Siemens. The company not only reported significantly higher earnings in the third quarter of its fiscal year but also raised its forecast for the current year, according to a statement. From April through June, the Munich-based company posted a profit of 2.58 billion euros after taxes—about 16 percent more than in the same period last year.

“We have closed out another very successful quarter,” says CEO Roland Busch, adding, “We are on track for another successful fiscal year and are raising our outlook.” Siemens now expects earnings per share to range from 11.20 to 11.50 euros, rather than the previously projected 10.70 to 11.10 euros. Roughly extrapolated to the entire Group, this amounts to an average of several hundred million euros more.

And the foundation for future business is also strong: Order intake rose by 13 percent to nearly 28 billion. According to Siemens, this is a record.

Healtineers' spin-off is moving forward

Siemens is also benefiting from U.S. duty refunds related to its majority stake in Siemens Healthineers. However, the company plans to roughly halve its two-thirds stake by distributing the shares to its shareholders. This is no trivial matter from a tax perspective. Siemens appears to be making progress on this front, however, as the new CFO, Veronika Bienert, says: “As expected, we have now been able to reach a binding resolution with the tax authorities on the relevant tax issues so that we can proceed with the spin-off of Siemens Healthineers as planned.”

Among the three core divisions, the business related to industrial digitalization (Digital Industries)—which had been somewhat weaker recently—saw the strongest growth. Earnings in that division rose by 44 percent to 923 million euros. However, Smart Infrastructure remains in the lead with 1.27 billion. Here, earnings rose by 19 percent. The rail division, Mobility, earned 280 million, which is slightly less than a year ago.