News
Earnings Release Q4 FY 2010: Siemens’ Growth Gains Momentum
11.11.2010
Orders and revenue rise again in all Sectors and region; Strong Q4 completes record year for cash
We completed fiscal 2010 very successfully. We are coming out of the economic downturn with full momentum. Our growth is gaining speed. Operationally, we achieved record profit twice in a row. We expect to take this positive momentum into the next fiscal year. We have to keep winning, order by order. We expect clear growth in new orders compared to fiscal 2010. Also, revenue should again grow moderately. We expect to continue the positive trend in earnings growth.
Peter Löscher, President and Chief Executive Officer of Siemens AG
Financial Highlights:
- For the second straight quarter, Siemens delivered order and revenue growth both year-over-year and on a sequential basis, in all three Sectors.
- Revenue rose 8% and orders climbed 25%, including growth in all reporting regions and double-digit increases in emerging economies. The book-to-bill ratio was 1.11 and the backlog for the Sectors totaled €87 billion.
- Total Sectors profit of €1.064 billion included impairment charges of €1.204 billion at Diagnostics.
Net income (loss) was a negative €396 million due primarily to the impairment charges at Diagnostics and charges of €383 million for completing previously announced staff reductions at Siemens IT Solutions and Services. Basic EPS was a negative €0.54. - Free cash flow from continuing operations was €2.990 billion for the quarter and €7.111 billion for the fiscal year.
- For fiscal 2010, orders rose 3% to €81.163 billion and revenue of €75.978 billion was nearly level with the prior year. Total Sectors profit of €7.789 billion exceeded the prior-year level even after the impairment charges mentioned above. Net income climbed 63%, to €4.068 billion. Siemens proposes a dividend of €2.70 per share compared to €1.60 per share in fiscal 2009.
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All figures are preliminary and unaudited. This Earnings Release should be read in conjunction with information Siemens published today regarding legal proceedings. Financial Publications are available for download at: www.siemens.com/ir -> Publications & Events.
New orders and order backlog; adjusted or organic growth rates of Revenue and new orders; book-to-bill ratio; Total Sectors Profit; return on equity, or ROE; return on capital employed, or ROCE; Free cash flow; cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT; earnings effect from purchase price allocation (PPA effects) and integration costs; net debt and adjusted industrial net debt are or may be non-GAAP financial measures. These supplemental financial measures should not be viewed in isolation as alternatives to measures of Siemens’ financial condition, results of operations or cash flows as presented in accordance with IFRS in its Consolidated Financial Statements. Other companies that report or describe similarly titled financial measures may calculate them differently. Definitions of these supplemental financial measures, a discussion of the most directly comparable IFRS financial measures, information regarding the usefulness of Siemens’ supplemental financial measures, the limitations associated with these measures and reconciliations to the most comparable IFRS financial measures are available on Siemens’ Investor Relations website at www.siemens.com/nonGAAP.
For additional information, see “Supplemental financial measures” and the related discussion in Siemens’ annual report on Form 20-F, which can be found on Siemens’ Investor Relations website or via the EDGAR system on the website of the United States Securities and Exchange Commission.