Siemens achieves ‘strong growth’ in third quarter

Siemens achieved strong growth again in the third quarter of fiscal 2011.

New orders climbed 20% year-over-year and revenue rose 2%.

These figures include negative currency translation effects that took five percentage points from new orders as well as revenue.

Income from continuing operations was below the prior-year figure. This decline was due to negative profit impacts in connection with an ‘arbitration decision and in connection with the particle therapy business’.

“We continued to grow in the third quarter and are on track to reach our targets for fiscal 2011. New orders rose again sharply, driven by a large order at Mobility.

“We’re vigorously tackling operating challenges. Our markets are still robust, although risks are tending to increase in the global economic environment,” said Siemens President and CEO Peter Löscher.

In the third quarter, new orders climbed 20% to €22.9 billion.

This figure includes the order, worth €3.7 billion, to supply Deutsche Bahn with trains of the new ICx generation.

Revenue increased 2% to €17.844 billion. Negative currency translation effects – particularly in the U.S., India and China – reduced growth rates for new orders and revenue by five percentage points.

The book-to-bill ratio in the third quarter was 1.29. The order backlog reached a record high of €96 billion, after totaling €92 billion at the end of the second quarter of fiscal 2011.

In fiscal 2011, Siemens expects organic order intake to show a significant increase compared to the order intake of €74.1 billion for continuing operations in fiscal 2010.

Supported also by its already strong order backlog, the company expects revenue, which was €69 billion for continuing operations in fiscal 2010, to return to mid-single-digit organic growth. Siemens further anticipates income from continuing operations to be at least €7.5 billion.

Income from continuing operations in fiscal 2010 was €4.3 billion. This outlook excludes the negative impact of €472 million after taxes related to the arbitration decision mentioned earlier and other effects from legal and regulatory matters that may arise.​

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