Siemens Reports Solid 4Q Results But Outlines Conservative Guidance -- Earnings Review
November 12 2020 - 9:22AM
Dow Jones News
By Kim Richters
Siemens AG released results for the fourth quarter of its fiscal
year ended Sept. 30 on Thursday. Here's what you need to know:
NET PROFIT: Siemens posted net profit of 1.76 billion euros
($2.07 billion) for the quarter, compared with EUR1.32 billion a
year earlier and analysts' expectations of EUR1.72 billion. For its
full fiscal year, profit came in at EUR4.03 billion, down from
EUR5.17 billion prior-year.
REVENUE: Siemens's revenue for the quarter fell 6% to EUR15.31
billion euros, missing analysts' forecast of EUR15.50 billion,
according to a consensus of analysts' forecasts compiled by the
company. Full-year revenue fell to EUR57.14 billion from EUR58.48
billion.
ORDERS: Quarterly orders declined 1% to EUR15.56 billion, but
came in above analysts consensus forecasts of EUR15.48 billion.
Full-year orders came in at EUR59.98 billion compared with EUR64.68
billion.
WHAT WE WATCHED:
--GUIDANCE: Looking ahead, Siemens doesn't expect the
coronavirus pandemic to have a long-lasting impact on the global
economy but warned that some customer industries continue to face
pandemic-related challenges. For the current fiscal year 2021,
Siemens expects moderate growth for its comparable revenue and sees
after-tax profit increasing moderately from fiscal 2020's EUR4.2
billion. It forecasts currency headwinds burdening its revenue,
orders and industrial profit in the year. Analysts at Berenberg and
Jefferies have called the company's new guidance conservative but
said Siemens's fourth quarter was solid overall.
--STRATEGY: After recently selling subsidiary Flender GmbH and
spinning off and listing Siemens Energy AG, Siemens said Thursday
that it will carve out its traffic business Intelligent Traffic
Systems from the mobility unit and create a separately managed
company. DZ Bank analyst Thorsten Reigber said Siemens's
restructuring process was on the right track.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
November 12, 2020 09:07 ET (14:07 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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