Siemens gloomy about future despite posting €2.64bn profits

German engineering giant talks of 'deteriorating industrial investment sentiment'

German engineering and technology group Siemens posted a fourth quarter operating profit of €2.64bn (£2.27 bn, $2.92 bn) for its fourth quarter – a 20 per cent rise in the three months to the end of September – thanks to a substantial increase in large orders.

The company said the strong performance came despite “deteriorating industrial investment sentiment”.

And Siemens remains cautious for 2020, warning of expected weakening in the global economy over the next 12 months and projecting a moderate decline for its short-cycle automotive and machinery products.

It posted revenue of €24.5 billion, an 8 per cent increase year-on-year, and orders of €24.7 billion, up 4 per cent from a year earlier.

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Revenue and order growth were 6 per cent and 2 per cent respectively on a comparable basis, while adjusted Ebita (earnings before interest, taxes and amortisation) industrial businesses surged to €2.6 billion.

Net income rose to €1.5 billion and basic earnings per share rose to €1.63 excluding severance charges.

Orders rose on double-digit growth in the Americas and Asia, Australia with revenue growth strongest in the Americas. Siemens also saw substantial order growth in its new-unit business, particularly from a €400m order for a combined-cycle power plant in France, including service.

Siemens AG
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