Siemens Gets Off to a Strong Start in Fiscal Year 2024

Siemens made a successful start to fiscal year 2024 in the first quarter ending 31 December 2023. According to the disclosed data, order intake reached EUR 22.3 billion in the first quarter of 2024, showing a 2 percent increase on a comparable basis. Revenue rose to EUR 18.4 billion with a 6 percent increase on a comparable basis. Industrial Business profit was recorded at EUR 2.7 billion, while the Industrial Business profit margin rose to 15.8 percent. At group level, free cash flow rose to EUR 1 billion, a significant increase from the previous year. Net income increased 56 percent to EUR 2.5 billion. Siemens President and CEO Roland Busch stated: "Siemens delivered another strong quarter and continued its profitable growth trajectory. We expanded the scope of our Microsoft and AWS partnerships to make artificial intelligence even more accessible. Our customers place complete trust in us as technology partners to support them in their digitalization and sustainability transformation initiatives." Siemens AG Chief Financial Officer Ralf P. Thomas commented: "Our free cash flow exceeded EUR 1 billion, showing a net increase compared to the same quarter of the previous year. We continue to focus on enhancing our execution capability and are clarifying our expectations for fiscal year 2024." [caption id="attachment_159642" align="aligncenter"] Roland Busch[/caption]

Industrial Business profit reaches record high

In the first quarter of 2024, Siemens increased revenue by 6 percent on a comparable basis, adjusted for currency and portfolio effects, to EUR 18.4 billion. Total order intake reached EUR 22.3 billion, representing a 2 percent increase compared to the previous year on a comparable basis. Remaining orders reached EUR 113 billion. Industrial Business profit rose to EUR 2.7 billion with a 3 percent increase, setting a new first-quarter record on a fiscal year basis. Industrial Business profit margin increased to 15.8 percent. Net income rose 56 percent to EUR 2.5 billion with strong momentum, which also includes a EUR 0.5 billion gain from Siemens Energy investments related to the transfer of the 8 percent stake in Siemens Energy AG to Siemens Pension-Trust e.V. and the termination of equity method accounting. Basic earnings per share before purchase price allocation accounting reached EUR 3.19, up 53 percent compared to the same quarter of the previous year. Free cash flow from continuing and discontinued operations improved to EUR 1 billion compared to the previous year when seasonal conditions are taken into account. The basis for this increase was formed by a EUR 1.3 billion rise in free cash flow in the Industrial Business segment. Total revenue recorded in the Digital Industries business segment at EUR 4.6 billion remained virtually flat on a comparable basis. High revenue achieved in the software sector was more than offset by revenue declines in the automation sector, particularly in high-margin products. Orders declined 31 percent on a comparable basis to EUR 4 billion, particularly affected by the automation business segments, due to weaker year-over-year market conditions and customers continuing to reduce inventory levels. Profit declined 20 percent to EUR 895 million, primarily due to lower capacity utilization and a less favorable product mix. As a result, profit margin was recorded at 19.6 percent.

Order intake in Smart Infrastructure business segment

Order intake in the Smart Infrastructure business segment demonstrated strong performance at EUR 5.8 billion, tracking at similarly high levels compared to the same quarter of the previous year. Signed major contracts contributed part of the orders. Revenue rose to EUR 4.8 billion with a 9 percent increase on a comparable basis. Profit increased 26 percent to EUR 885 million level, while profit margin was realized at 18.3 percent. Both profit and profitability in the Smart Infrastructure business segment reached their highest level to date, thanks to a EUR 94 million positive impact from the partial reversal of a provision related to past portfolio activities. In the Mobility business segment, revenue rose to EUR 2.7 billion with a 12 percent increase on a comparable basis. Order intake reached EUR 5.6 billion with a 92 percent increase on a comparable basis, driven by growth in large order volumes. Source