Siemens Shows Solid Performance in the First Quarter

In the first quarter of 2020, the second fiscal quarter for the company, Siemens delivered a solid performace in serious circumstances. The revenue was almost flat, while net revenue slipped down compared with the same period in 2019.

Revenue was €14.2 billion, nearly level with the same quarter a year ago, while orders declined 8%, to €15.1 billion, on sharply lower volume from large orders at Mobility. On a comparable basis, excluding currency translation and portfolio effects, revenue declined 1% and orders came in 9% lower.

Adjusted EBITA Industrial Businesses was significantly lower at €1.6 billion, with all industrial businesses showing effects from the COVID-19 pandemic. Adjusted EBITA margin Industrial Businesses of 12.1% was held back also by severance charges of €0.2 billion, taking 1.2 percentage points. Net income was €0.7 billion compared to €1.9 billion in 2019. Basic earnings per share (EPS) declined to €0.80.

"We delivered a robust quarter given the serious circumstances. I am particularly impressed with my team that we are able to keep the original timeline for the spin-off of our energy business. While we expect to reach the bottom in the third quarter of fiscal 2020, we continue to keep the health and safety of our partners and employees as our first priority, while maintaining business continuity as much as responsibly possible," said Joe Kaeser, President and CEO of Siemens.