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Sales and incoming orders down: outgoing Siemens boss cuts dividend for the first time

2020-11-12T07:09:02.197Z


Shortly before the end of his seven-year term in office, Siemens boss Joe Kaeser announced a falling dividend for the first time. It is true that there was a decent jump in profits in the fourth quarter. For the entire fiscal year, however, the numbers look worse.


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"The new Siemens is excellently positioned to shape the huge industrial transformation":

Siemens boss Joe Kaeser

Photo: ODD ANDERSEN / AFP

The technology group Siemens benefited from the spin-off of its energy business in the fourth quarter.

After taxes, the company earned around 1.9 billion euros, 28 percent more than in the previous year, as the company announced on Thursday in Munich.

In operational terms, the development was further negatively impacted in part by a decline in demand in connection with the corona pandemic.

Savings had a positive effect.

The adjusted operating result of the industrial businesses (Ebita) increased by 10 percent to 2.6 billion euros, which was well above the analysts' expectations.

Here Siemens also benefited from the revaluation of its stake in Bentley Systems in connection with the company's IPO in September.

Sales and incoming orders were negatively impacted by currency effects.

Revenues fell by 6 percent to 15.3 billion euros, new business decreased by 1 percent. 

In the entire past financial year, profit fell by a quarter, but the bottom line is still an increase of 4.2 billion euros.

Sales fell in the past fiscal year - excluding the spun off Energietechnik - by 2 percent to 57.1 billion euros.

Incoming orders shrank by 7 percent to 60.0 billion.

For the first time since CEO Joe Kaeser took office seven years ago, the dividend has therefore fallen: to 3.50 from 3.90 euros per share.

Moderate growth in the new financial year

Siemens concluded "a remarkable fiscal year with a strong fourth quarter," said the outgoing CEO

Joe Kaeser

(63).

The years are the last for which he is responsible.

In February he is to be replaced by his deputy

Roland Busch

(55).

The future boss is seen as apolitical, straightforward and in love with technology - a counter-model to his predecessor (read a portrait of Roland Busch here).

Busch has already made it clear that he does not want to break up the group any further.

more on the subject

  • Loss after billions in depreciation: Siemens Energy is phasing out coal power business

  • Slump in profits in laboratory diagnostics: Corona crisis is hitting Siemens Healthineers' business

  • Drive subsidiary goes to US investor: Siemens sells Flender to Carlyle for two billion euros

  • Roland Busch: Designated Siemens boss does not want to break down the group into many parts

  • Share fluctuates strongly: Siemens Energy with turbulent stock market debut

  • A portrait of Roland Busch: The plans of the new emperor in the Siemens Reich by Angela Maier

"After the spin-off from Siemens Energy and the sale of Flender, the new Siemens is excellently positioned to shape the huge industrial transformation," Kaeser continued.

His designated successor, Busch, spoke of a new chapter in the company's 173-year history.

"We have turned a conglomerate into a focused technology company," said Busch. 

Siemens also expects the 2020/21 fiscal year, which began on October 1, to face considerable headwinds from the currency side.

On a comparable basis - i.e. adjusted for currency and portfolio effects - the group expects moderate (3 to 5 percent) sales growth.

Profit after tax should also increase moderately from 4.2 billion euros in the previous year.

Siemens assumes that the corona pandemic will not permanently burden the global economy.

mg / dpa-afx / Reuters

Source: spiegel

All news articles on 2020-11-12

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