Siemens Delivers Another Strong Quarter
In the second fiscal quarter of 2022, German tech giant Siemens delivered good results that the company's executives marked as strong. The orders continued to rise along with the revenue, while net profit fell.
Orders climbed 32% year-over-year, reaching €21.0 billion on double-digit increases in all industrial businesses, while revenue rose 16% to €17.0 billion. Profit of Industrial Business came in lower at €1.8 billion with a profit margin of 11.0%, both heavily burdened by €0.6 billion in impacts, mainly in Mobility, after sanctions imposed on Russia. Net income was €1.2 billion, down 49%, with corresponding basic earnings per share (EPS) of €1.29 and EPS before purchase price allocation accounting (EPS pre-PPA) of €1.50.
“The rise in orders and revenue again reflects the trust our customers place in us to support digitalization, automation, and sustainability. In an extremely challenging environment, our business continues to be strong,” said Roland Busch, President, and CEO of Siemens. “We join the international community in condemning the war in Ukraine and are focused on supporting our people and providing humanitarian aid. Today, we announced our decision to carry out an orderly process to wind down our industrial business activities in Russia.”
“With strong operating results and excellent free cash flow of €1.3 billion, Siemens’ second quarter underlines our execution capabilities and strength, even in the face of significant headwinds. The now tangible results of our portfolio optimization and ongoing mitigation of supply chain challenges allow us to look confidently into the second half of our fiscal year. As a result, we confirm our outlook,” said Ralf P. Thomas, CFO of Siemens.