Siemens AG



Effective with the first quarter of fiscal 2007, Siemens prepares its primary
financial reporting according to International Financial Reporting Standards
(IFRS) on a retroactive basis.

Siemens in the first quarter 2007 (October 1, 2006 to December 31, 2006)

    --  Group profit from Operations rose 51%, to EUR 1.631 billion.

    --  Strong operating profit growth was not evident in net income of EUR 788
        million, which included a EUR 423 million negative impact from Siemens'
        share of European Commission sanctions on major suppliers of certain
        power transmission and distribution products.

    --  Income from continuing operations also included the sanction effect, but
        still rose 18%, to EUR 714 million.

    --  Revenue increased 6% compared to the prior-year period, to EUR 19.068
        billion, and orders rose 4%, to EUR 24.582 billion. On a comparable
        basis, excluding currency translation effects and the net effect of
        acquisitions and dispositions, revenue and orders increased 10% and 8%,
        respectively.

    --  On a continuing basis, net cash used in operating and investing
        activities was EUR 1.160 billion compared to net cash used of EUR 724
        million in the first quarter a year earlier.

"In terms of the underlying performance of our business, the first quarter got
the fiscal year off to a strong start," said Siemens CEO Klaus Kleinfeld. "Order
growth was particularly satisfying, considering that the prior-year basis of
comparison was already quite high. We also brought more of our revenue growth to
the bottom line, with a substantial increase in Group profit from Operations.
While it is disappointing to see our net income growth reversed by an impact
from events in the past, we are moving on with our operations tremendously
improved year-over-year. This shows that Fit4More is delivering a more
profitable and growth-oriented portfolio for Siemens, and we are continuing in
that direction by closing the deals we announced last year and initiating new
ones. We look forward to maintaining this momentum."

In the first quarter of fiscal 2007, ending December 31, 2006, Siemens reported
net income of EUR 788 million, a decrease of 16% compared to EUR 939 million in
the prior-year period. Basic earnings per share were EUR 0.83 and diluted
earnings per share were EUR 0.80. In the first quarter a year earlier, both
basic and diluted earnings per share were EUR 0.99. Discontinued operations,
primarily the businesses formerly reported as the Communications (Com) segment,
contributed EUR 74 million to net income in the first quarter. In the same
period a year earlier, earnings of discontinued operations of EUR 332 million
included a EUR 356 million gain on the sale of Juniper shares only partially
offset by EUR 142 million in severance charges. Excluding discontinued
operations, income from continuing operations was EUR 714 million in the first
quarter, an increase of 18% compared to EUR 607 million in the same period a
year earlier. On a continuing basis, basic earnings per share were EUR 0.75 and
diluted earnings per share were EUR 0.73. In the first quarter of the prior
year, both basic and diluted earnings per share were EUR 0.64.

The primary driver of growth in net income and income from continuing operations
was Group profit from Operations, which rose 51% year-over-year, to EUR 1.631
billion. All Groups within Operations reported positive results, and the
majority increased both Group profit and profit margin compared to the first
quarter a year ago. Automation and Drives (A&D) led all Groups with EUR 450
million in Group profit, followed by Medical Solutions (Med), Power Generation
(PG) and Siemens VDO Automotive (SV). Siemens Business Services (SBS) posted a
profit compared to a substantial loss in the first quarter a year earlier.

Net income in the first quarter included a penalty of EUR 423 million arising
from a previously disclosed European Commission antitrust investigation,
involving providers of certain gas-isolated switchgear in the power transmission
and distribution industry between 1988 and 2004. The penalty, which is not
tax-deductible, was taken within Corporate items. Net income was positively
influenced by Corporate Treasury earnings, which under IFRS swung from a
negative EUR 312 million in the first quarter a year ago to a positive EUR 46
million in the current quarter. The prior-year period included a EUR 315 million
negative effect related to a cash settlement option on a convertible bond.
Earnings from Financing and Real Estate activities were EUR 152 million compared
to EUR 182 million in the first quarter a year earlier.

First-quarter revenue increased 6% year-over-year, to EUR 19.068 billion. Orders
of EUR 24.582 billion were 4% higher compared to the strong first quarter a year
earlier. Excluding currency translation and portfolio effects, first-quarter
revenue rose 10% and orders climbed 8% year-over-year. Revenue growth was
balanced regionally, while order growth was concentrated in the Americas, the
Middle East, and Europe including Germany. Double-digit contributions to revenue
growth came from PG, PTD, A&D and Siemens Building Technologies (SBT), while
order growth was driven by double-digit increases at PTD, PG and Industrial
Solutions and Services (I&S).

For Siemens on a continuing basis, net cash used in operating and investing
activities was EUR 1.160 billion compared to EUR 724 million in the first
quarter a year earlier. The difference is due primarily to the first payment for
the acquisition of the diagnostics division of Bayer AG.

Note: Starting today at 10 a.m. CET, we will provide a live video webcast on the
internet of Chairman of the Supervisory Board Dr. Heinrich v. Pierer's, Member
of the Supervisory Board and Chairman of the Audit Committee Dr. Gerhard
Cromme's and CEO Dr. Klaus Kleinfeld's speeches to the Annual Shareholders'
Meeting at the Olympic Hall in Munich, Germany. You can access the webcast at
www.siemens.com/agm. A video of the speeches will be available after the live
webcast. Starting at 8:30 a.m. CET, Siemens CEO Dr. Klaus Kleinfeld and CFO Joe
Kaeser will hold a conference call with analysts and investors. You can follow
the conference call live on the internet by going to
www.siemens.com/analystcall.

IFRS Conversion

Beginning with the first quarter of fiscal 2007, Siemens prepares its primary
financial reporting according to International Financial Reporting Standards
(IFRS). For the years prior to fiscal 2007, Siemens prepared its primary
financial reporting according to United States Generally Accepted Accounting
Principles (U.S. GAAP). As part of its transition to IFRS, Siemens has published
IFRS Consolidated Financial Statements for fiscal 2006 and fiscal 2005 as
supplemental information to its U.S. GAAP figures. This document is available at
www.siemens.com/investors, where you can also find a presentation explaining
major differences between IFRS and U.S. GAAP in Siemens financial results.

This document contains forward-looking statements and information - that is,
statements related to future, not past, events. These statements may be
identified by words as "expects," "looks forward to," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates," "will" or words of similar meaning.
Such statements are based on our current expectations and certain assumptions,
and are, therefore, subject to certain risks and uncertainties. A variety of
factors, many of which are beyond Siemens' control, affect its operations,
performance, business strategy and results and could cause the actual results,
performance or achievements of Siemens worldwide to be materially different from
any future results, performance or achievements that may be expressed or implied
by such forward-looking statements. For us, particular uncertainties arise,
among others, from: changes in general economic and business conditions
(including margin developments in major business areas); the challenges of
integrating major acquisitions and implementing joint ventures and other
significant portfolio measures; changes in currency exchange rates and interest
rates; introduction of competing products or technologies by other companies;
lack of acceptance of new products or services by customers targeted by Siemens
worldwide; changes in business strategy; the outcome of investigations and legal
proceedings as well as various other factors. More detailed information about
certain of these factors is contained in Siemens' filings with the SEC, which
are available on the Siemens website, www.siemens.com and on the SEC's website,
www.sec.gov. Should one or more of these risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may vary
materially from those described in the relevant forward-looking statement as
expected, anticipated, intended, planned, believed sought, estimated or
projected. Siemens does not intend or assume any obligation to update or revise
these forward-looking statements in light of developments which differ from
those anticipated.

Siemens AG                         Wolfram Trost
Corporate Communications           80312 Munich
Media Relations                    Tel.: +49 89 636-34794 Fax: -32825
80312 Munich                       E-mail: wolfram.trost@siemens.com
Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jul 2024 to Aug 2024 Click Here for more Siemens N Ord Charts.
Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Aug 2023 to Aug 2024 Click Here for more Siemens N Ord Charts.