A Solid Performance by Siemens in the Second Quarter of 2020

During the second quarter of 2020, a third fiscal quarter for the company, Siemens has recorded solid performance considering the COVID-19 impact. While the company expects the economic consequences of the pandemic to continue to strongly impact fiscal fourth quarter financial results, macroeconomic developments and their influence on Siemens still cannot be reliably assessed.

In the previous period, Siemens had a revenue of €13.5 billion, 5% lower than the same quarter a year ago. Their Mobility business delivered growth and other industrial businesses posted declines resulting largely from factors related to COVID-19. Orders, which came in 7% lower at €14.4 billion, included significant contract wins at Mobility resulting in a book-to-bill ratio well above one, at 1.07.

Adjusted EBITA Industrial Businesses increased to €1.8 billion, benefiting from a €0.2 billion gain from revaluation of an equity stake within Digital Industries. At the same tima, adjusted EBITA margin Industrial Businesses was 14.3%, including the revaluation effect which contributed 1.7 percentage points and severance charges which took 0.4 percentage points.

Net income was €0.5 billion and basic earnings per share (EPS) were €0.67. The company had strong free cash flow of €2.5 billion, up from €0.4 billion in the same quarter of 2019 with improvements in all industrial businesses.

"Despite the severe global crisis, we delivered strong operating performance and rigorously drove our realignment forward. Our strategy concept Vision 2020+ is gaining traction, and Healthineers is testimony that shows the program’s strategic and transformational power. Our employees and our partners have my deep gratitude and respect. Together, they’ve set an impressive benchmark for dedication and performance," said Joe Kaeser, President and CEO of Siemens.