Siemens is in the money

A Siemens release reported that the group ended fiscal 2011 with record operating results and was beginning begin the new fiscal year in a position of strength.

It said total sectors profit climbed by 36 per cent to €9.1 billion, income from continuing operations by nearly two-thirds to €7 billion. Revenue and new orders also increased. While revenue from continuing operations grew seven per cent to €73.5 billion, new orders rose 16 per cent to €85.6 billion.

“With a strong fourth quarter in a turbulent economic environment, we ended fiscal 2011 with record operating results. With our new organisation in four sectors, we have aligned our business even more closely with our customers. Siemens has a strong portfolio and stands for stability and confidence in troubled times. We are well positioned for moderate revenue growth in fiscal 2012 and surpassing the €100 billion revenue threshold in the medium term,” said Siemens AG’s president Peter Löscher.
 
Particularly, the industry and energy sectors had an outstanding year. For instance, the industry sector’s revenue grew by 9 per cent to €32.9 billion and its new orders climbed 24 per cent year-over-year to €37.6 billion.

Meanwhile, its industry automation and drive technologies divisions also posted double-digit growth rates in both revenue and orders. The sector profit rose 36 per cent to €3.6 billion.
 
At the energy sector, revenue grew eight per cent to €27.6 billion and new orders climbed 15 per cent to €34.8 billion. A highlight of the year was winning the Ras Az Zawr power plant project in Saudi Arabia, a contract worth over $1 billion. This sector’s high profit of €4.1 billion – up nearly one-quarter year-over-year – was attributable in particular to the strong performance by the fossil power generation division.

Profit was burdened by impairment charges resulting from an assessment of the solar power business. The sector’s Renewable Energy Division, among others, also made a significant contribution to order growth. For example, Siemens received its first order for an offshore wind farm in China this year – marking the company’s entry into the world’s biggest wind power market. In Germany, the first commercial offshore wind farm was inaugurated.

The picture for the Healthcare Sector was mixed. A strong development in the imaging business contrasted with ongoing operative challenges in the diagnostics business as well as in the pioneering field of particle therapy. Revenue and new orders were slightly above the prior year’s level, at €12.5 billion and €13.1 billion, respectively. Sector profit doubled to €1.3 billion. In the previous year, impairments in the diagnostics division had burdened profit.
 
The group also expected the fiscal 2012 with moderate organic revenue growth compared to fiscal 2011.

“We anticipate continued strong earnings performances in our businesses, despite ongoing pricing pressure and higher operating expenses. We set our goal for fiscal 2012 income from continuing operations based on the high level we achieved in the prior year, excluding the net positive effect of €1.0 billion related to Areva that lifted income to €7.0 billion in fiscal 2011,” the release said.