TIDMSIE
Earnings Release Q2 2011 January 1 to March 31, 2011
OUTSTANDING BROAD-BASED GROWTH Customer wins drive orders
growthSubstantial gain on sale of Areva NP interest
Peter Löscher, President and Chief Executive Officer of Siemens
AG
"We've achieved outstanding, broad-based order growth. We're
raising our earnings forecast for fiscal 2011 to at least EUR7.5
billion."
FINANCIAL HIGHLIGHTS:*
* During the second quarter of fiscal 2011, OSRAM and Siemens IT
Solutions and Services were classified as discontinued operations.
Prior-period results are presented on a comparable basis.
-- For the fourth straight quarter, all Sectors of Siemens delivered
order and revenue growth compared to the prior-year period,
including
growth in all reporting regions. Our emerging economies grew
faster
than orders and revenue overall.
-- Revenue rose 7% and orders climbed 28%. The book-to-bill ratio was
1.17 and the combined backlog for the Sectors was EUR92
billion.
-- Total Sectors profit of EUR3.695 billion including strong profit growth
in Energy and Industry and a EUR1.520 billion gain from the
divestment
of Siemens' stake in Areva NP.
-- Income from continuing operations up to EUR3.174 billion. Corresponding
basic EPS up to EUR3.58.
-- Free cash flow from continuing operations down to EUR354 million on
increases in net working capital.
ORDERS AND REVENUE
Substantial order growth continues in the second quarter
All Sectors delivered higher orders and revenue in the second
quarter. Orders climbed 28% on growth across all Sectors and large
contract wins, which led to a new high in order intake in the
Energy Sector. Revenue increased 7% with growth in all three
reporting regions. On an organic basis, excluding currency
translation and portfolio effects, orders increased 27% and revenue
rose 6%. The combined book-to-bill ratio for Siemens was 1.17. The
Sectors' combined order backlog remained at record level of EUR92
billion, despite significant negative currency translation effects
within the quarter.
Global order growth in established and emerging markets
Energy orders climbed more than 50% on the strength of a number
of large contract wins at Fossil Power Generation, Renewable Energy
and Power Transmission. Double-digit order growth in Industry
included strong increases at all Divisions. Order growth in
Healthcare was solid across its businesses.
All regions delivered double-digit order growth, led by the
region comprising Europe, the Commonwealth of Independent States,
Africa and the Middle East (Europe/CAME) and Asia, Australia.
Within Europe/CAME, strong growth in Germany included several large
Energy orders. Globally, emerging markets again grew significantly
faster than orders overall, at 52%, and accounted for EUR7.475
billion, or 36%, of total orders for the quarter.
Revenue rises in all Sectors and regions
Revenue in Industry was up 9%, due primarily to strong
double-digit growth at Drive Technologies and Industry Automation.
All Divisions contributed to broad-based revenue growth in Energy.
Higher revenue in Healthcare came primarily from its imaging and
therapy systems businesses.
Revenue rose in all three regions, led by the Americas and Asia,
Australia. More modest increases in Europe/CAME included
double-digit growth in the Middle East. Emerging markets on a
global basis grew faster than revenue overall, at 12%
year-over-year, and accounted for EUR5.579 billion, or 31%, of
total revenue for the quarter.
INCOME AND PROFIT
Double-digit growth in Sector profit before Areva gain
In the second quarter, Total Sectors profit climbed to EUR3.695
billion, up from EUR1.849 billion a year earlier. The increase was
driven mainly by higher Sector profit at Energy of EUR2.421
billion. This result was due largely but not only to a pretax
EUR1.520 billion gain from the sale of the Sector's 34% share in
Areva NP to Areva S.A. Operating results in Energy included a
strong earnings performance by the Fossil Power Generation
Division. Profit for Industry also increased substantially
year-over-year, with continued strong execution in an improved
market environment lifting Sector profit to EUR824 million.
In the current quarter, Total Sectors profit benefited from
positive currency effects in all Sectors, particularly in Industry
and Energy. For comparison, Total Sectors profit in the prior-year
period included gains of EUR157 million related to curtailment of
pension plans in the U.S. The Healthcare Sector benefited most
strongly from this effect, and as a result its profit of EUR450
million in the current quarter was lower than in the prior-year
quarter. The pension curtailment gains for Energy and Industry were
largely offset by charges for capacity adjustments, which totaled
EUR125 million for all Sectors in the prior-year period.
Income from continuing operations more than doubles
Income from continuing operations in the second quarter
increased to EUR3.174 billion from EUR1.427 billion, and
corresponding basic EPS climbed to EUR3.58 up from EUR1.62 a year
earlier. These increases were due predominantly to higher Total
Sectors profit including the above mentioned Areva gain.
Net income was impacted by discontinued operations
In the current period, net income rose to EUR2.836 billion
compared to EUR1.498 billion a year earlier. Corresponding basic
EPS increased to EUR3.20 compared to EUR1.70 a year earlier.
Siemens has previously announced plans to divest Siemens IT
Solutions and Services (for more information see "Divestment of
Siemens IT Solutions and Services" below) and to publicly offer
OSRAM. Siemens intends to retain a minority stake in the future
OSRAM, in which it will remain a long-term anchor shareholder. Both
businesses were classified as discontinued operations during the
second quarter of fiscal 2011. Prior-period results are presented
on a comparable basis.
Discontinued operations posted a loss of EUR338 million compared
to income of EUR71 million in the second quarter a year earlier.
The main reason for the difference was a loss of EUR345 million
attributable to Siemens IT Solutions and Services including a
pretax impairment of EUR464 million of non-current assets. The loss
related to Siemens IT Solutions and Services in the prior-year
period was EUR34 million. OSRAM contributed EUR87 million after tax
to income from discontinued operations on higher revenue in all
businesses and regions compared to the prior-year period. OSRAM's
result was higher a year earlier, at EUR91 million after tax, due
to a portion of the pension curtailment gain mentioned above.
CASH, RETURN ON CAPITAL EMPLOYED (ROCE), PENSION FUNDED
STATUS
Net working capital raises on broad-based growth
After several quarters of strong cash performance, Free cash
flow from continuing operations decreased from EUR1.311 billion in
the second quarter a year ago to EUR354 million in the current
quarter. The decline was due primarily to a build-up of net working
capital at the Sector level associated with broad-based growth, and
also lower billings in excess. Furthermore, the current period
included higher cash outflows in connection with personnel-related
expenses comprising the previously disclosed special remuneration
for non-management employees.
Free cash flow from discontinued operations was a negative
EUR416 million, down from a negative EUR79 million in the
prior-year quarter. The decline includes payments related to
establishing Siemens IT Solutions and Services as a separate legal
group, including for carve-out activities and personnel-related
matters.
During the second quarter Siemens received EUR1.7 billion in
proceeds from the sale of its stake in Areva N.P. mentioned
earlier. These proceeds are not included in our measure for Free
cash flow.
ROCE rises on higher income from continuing operations
On a continuing basis, ROCE (adjusted) increased to 42.7% in the
second quarter of fiscal 2011, up from 17.4% a year earlier. The
difference was mainly due to higher income from continuing
operations, which included the gain on the sale of Siemens' share
in Areva NP.
Pension plan funded status further improves
The estimated underfunding of Siemens' pension plans as of March
31, 2011, amounted to approximately EUR5.3 billion, compared to an
underfunding of approximately EUR6.1 billion at the end of the
first quarter. The improvement in funded status since December 31,
2010, is due mainly to a decrease in Siemens' defined benefit
obligation (DBO) resulting from an increase in the discount rate
assumption as of March 31, 2011. As of September 30, 2010, pension
plan underfunding amounted to EUR7.4 billion.
INDUSTRY SECTOR
Continued strong growth momentum, excellent profit
performance
Beginning in the second quarter of fiscal 2011, results for the
Industry Sector no longer include OSRAM, which is classified as
discontinued operations in connection with Siemens' plans for a
public offering of OSRAM shares in fall 2011. Prior-period results
for the Sector are presented on a comparable basis.
Profit, revenue and orders for the Sector all rose compared to
the second quarter a year ago, on continued strong execution in an
improved market environment. Profit climbed to EUR824 million on
strong earnings increases at Industry Automation and Drive
Technologies. With profit and growth momentum restored following
the downturn, the Sector invested further in innovation and
enhanced its regional footprint by adding sales resources as
previously announced. For comparison, profit of EUR567 million in
the prior-year period included charges of EUR63 million related to
a project engagement with a local partner in the U.S., EUR50
million for staff reduction measures and a provision for a
supplier-related warranty which were partly offset by EUR53 million
of the pension curtailment gain mentioned earlier.
Second-quarter orders rose 22% on double-digit growth at all
Divisions and in all three reporting regions. Revenue increased 9%,
and with growth in all regions. The Sector's book-to-bill ratio was
1.07 and its order backlog was EUR29 billion at the end of the
quarter.
Revenue growth and favorable mix drive profit higher
Second-quarter profit at IndustryAutomation was EUR306 million,
up 60% year-over-year. Revenue growth drove high capacity
utilization and also included a more favorable business mix
compared to the prior-year quarter. Revenue and orders both rose
23%, led by strong growth in Asia, Australia. Emerging markets,
particularly China, grew even faster than revenue and orders
overall. Purchase price allocation (PPA) effects related to the
fiscal 2007 acquisition of UGS Corp. were EUR35 million in the
current period compared to EUR34 million a year earlier.
Strong profit performance, volume growth in all regions
Drive Technologies delivered sharply higher second-quarter
profit of EUR259 million year-over-year, due to a 22% rise in
revenue that increased capacity utilization. Higher revenue and
profit were most evident in the Division's short cycle business.
New orders for the Division climbed 25%. Both revenue and orders
rose in all three regions as market conditions continued to
improve.
Volume growth in stabilizing markets
Profit at Building Technologies was EUR84 million in the second
quarter, below the prior-period level due to higher marketing and
selling expenses associated with growth. Profit in the prior-year
period included the supplier-related warranty which was largely
offset by a portion of EUR24 million of the pension curtailment
gain mentioned above. Revenue rose 8% and orders climbed 11%
compared to the prior-year period, with increases in all three
reporting regions and strong demand for the Division's energy
efficiency solutions.
Continued order growth at Industry Solutions
Industry Solutions contributed second-quarter profit of EUR64
million. For comparison, the Division's loss in the prior-year
period included the charges related to a project engagement with a
local partner in the U.S. mentioned above and EUR38 million in
charges for staff reduction measures. Second-quarter revenue came
in 4% lower year-over-year, due to low order intake in prior
periods. Orders rose 10%, due primarily to higher orders in the
metals technologies business compared to the second quarter a year
ago.
Steady execution, strong profit performance
Mobility delivered EUR106 million in profit in the second
quarter. A year earlier, profit of EUR114 million benefited from a
portion of the pension curtailment gain mentioned above. Orders
rose 27% for the quarter, due primarily to a low basis of
comparison in the prior-year period. The low level of orders in
prior periods also influenced revenue in the current period, which
came in 5% below the level a year earlier.
ENERGY SECTOR
Broad-based growth, strong operational performance and
substantial Areva gain
The Energy Sector delivered strong operating results in the
second quarter, and also recorded the EUR1.520 billion Areva gain
at Fossil Power Generation mentioned earlier. Profit overall was
EUR2.421 billion, with Fossil Power Generation again leading all
Siemens Divisions in earnings contribution. Sector profit for the
quarter includes higher expenses for R&D, marketing and selling
associated with growth. Energy also recorded charges associated
with proactively optimizing capacities within its global footprint.
For comparison, Sector profit in the prior-year period was burdened
by charges for capacity adjustments related to a shift of
production capacity within the Americas, partly offset by the EUR25
million pension curtailment gain mentioned earlier.
All Divisions posted higher revenue and orders compared to the
same quarter a year ago. Sector revenue came in 8% higher
year-over-year, as Energy continued to execute well in converting
its large order backlog into current business. Orders jumped 51%
compared to the prior-year quarter, to a new high of EUR9.205
billion. Higher orders in all regions were highlighted by an
exceptionally large order in Saudi Arabia and three large offshore
wind-farms in Germany. Energy expects the pace of order intake to
slow in coming quarters following three consecutive quarters of
particularly high market demand. The book-to-bill ratio in the
current period was 1.37, and the Sector's order backlog increased
to EUR57 billion.
Exceptionally strong quarter includes favorable mix, large
orders
Fossil Power Generation continued its strong execution and
earnings performance, and also recorded a EUR1.520 billion gain on
the divestment of its stake in Areva NP. These factors combined to
lift profit to EUR2.049 billion for the quarter. The Division's
operating results rose to a high level due in part to a favorable
business mix, including conversion of high-margin component orders
from prior periods. Furthermore, the Division's service business
made an especially strong contribution in the quarter. These
factors more than offset EUR87 million charges related to the
Olkiluoto project in Finland. The prior-year period was burdened by
EUR59 million in charges for capacity adjustments related to a
shift of production capacity within the Americas region.
Second-quarter revenue rose 4% compared to the same period a year
earlier, including strong growth in the Americas. Fossil Power
Generation recorded a higher volume from large orders compared to
the prior-year period, particularly including a large order for a
combined-cycle power plant in Saudi Arabia.
Strong order growth, ongoing expansion of the wind business
Renewable Energy won new contracts for offshore wind-farms in
Germany which took orders up substantially compared to the second
quarter a year ago, which included significantly lower volume from
large orders. The Division reported revenue 8% above the prior-year
period, continuing its growth trend. Second-quarter profit came in
lower year-over-year mainly due to higher expenses for R&D,
marketing and selling associated with the ongoing expansion of the
wind business in emerging markets. In addition, current period
profit for the Division was impacted by substantial expenses
associated with the ongoing development of our solar business.
Emerging market demand drives order growth
Oil & Gas contributed EUR125 million to Sector profit in the
second quarter. Orders climbed 18% compared to the prior-year
period, including strong growth in emerging markets. Revenue grew
15%, including high double-digit increases in Asia, Australia and
the Americas.
Double-digit growth, stable profit contribution
Second-quarter orders at Power Transmission climbed 43%, driven
in part by a large order for connecting offshore wind-farms to
regional power grids. Revenue rose 14%, mainly driven by strong
project execution in the solutions business. Profit of EUR142
million was held back by EUR41 million charges, including for staff
reduction measures, associated with optimizing the Division's
global manufacturing footprint.
Revenue growth continues
Power Distribution generated 7% revenue growth. Second-quarter
orders were up slightly year-over-year, as double-digit growth in
Asia, Australia offset declines in other regions. Profit of EUR54
million was held back by higher expenses year-over-year for
marketing, selling and R&D associated with ongoing activities
related to new technologies such as smart grids.
HEALTHCARE SECTOR
Solid growth, stable earnings performance
Healthcare contributed Sector profit of EUR450 million in the
second quarter. For comparison, profit of EUR469 million in the
prior-year period included EUR79 million of the pension curtailment
gain mentioned earlier. Profit development was due to good earnings
conversion.
Second-quarter profit at Diagnostics was EUR86 million, compared
to EUR109 million in the second quarter a year earlier. The current
quarter included a less favorable business mix than a year earlier,
when profit also benefited from EUR22 million of the pension
curtailment gain mentioned above. PPA effects related to past
acquisitions at Diagnostics were EUR42 million compared to EUR44
million in the second quarter a year earlier.
Healthcare revenue rose 5%, led by strong revenue growth at its
imaging and therapy systems businesses. Order growth of 6% included
higher orders in all businesses compared to the same period a year
earlier. On a regional basis, Asia, Australia posted double-digit
increases in both revenue and orders highlighted by strong
increases in China. The Americas region delivered solid growth in
both revenue and orders. Healthcare's book-to bill ratio was 1.00
for the quarter, and its order backlog remained at EUR7 billion
compared to the previous quarter.
Diagnostics posted revenue of EUR924 million and orders of
EUR918 million, up from EUR901 million and EUR900 million in the
prior-year quarter, respectively, due primarily to growth in Asia,
Australia.
EQUITY INVESTMENTS AND FINANCIAL SERVICES
Positive Contribution from Equity Investments
Equity Investments recorded a profit of EUR23 million in the
second quarter, compared to a loss of EUR87 million a year earlier.
The positive swing includes a gain of EUR91 million on the sale of
Siemens' 49% stake in Krauss-Maffei Wegmann GmbH & Co. KG in
the second quarter. In a continuously challenging business
environment, the result related to Siemens' share in NSN was an
equity loss of EUR107 million compared to a loss of EUR169 million
a year earlier. NSN reported to Siemens that it recorded
restructuring charges and integration costs totaling EUR28 million,
compared to EUR125 million in the prior-year period.
After the close of the quarter, NSN completed its previously
announced acquisition of Motorola Solutions' networks assets.
Results from Equity Investments are expected to be volatile in
coming quarters.
Another strong quarter for Financial Services
Financial Services (SFS) delivered EUR114 million in profit
(defined as income before income taxes) and continued to benefit
from low credit hits. Total assets remained nearly unchanged at
EUR12.475 billion. An increase in assets due to growth in the
commercial finance business was offset primarily by negative
currency translation effects.
CENTRALLY MANAGED PORTFOLIO ACTIVITIES, CORPORATE ACTIVITIES AND
ELIMINATIONS
Positive result from Centrally managed portfolio activities
Centrally managed portfolio activities posted a profit of EUR9
million in the second quarter compared to a loss of EUR24 million
in the prior-year period. The second quarter a year earlier
included a loss of EUR22 million related to the electronics
assembly systems business which was sold during the current
period.
Certain business activities of the Siemens IT Solutions and
Services business, including the HERKULES project, are not
classified as discontinued operations and therefore are
retrospectively reclassified to Centrally managed portfolio
activities.
Lower gains on real estate disposals
Income before income taxes at Siemens Real Estate (SRE) was EUR1
million in the second quarter, down from EUR107 million in the same
period a year earlier which had included substantially higher
income related to the disposal of real estate. During the current
quarter, assets with a book value of EUR63 million were transferred
to SRE as part of Siemens' program to bundle its real estate assets
into SRE and to implement further measures to increase the
efficiency of these assets. SRE expects to incur costs associated
with the program in coming quarters, and to continue with real
estate disposals depending on market conditions.
Negative contributions from Corporate items and pensions
Corporate items and pensions totaled a negative EUR62 million in
the second quarter compared to a positive EUR30 million in the same
period a year earlier.
This change was driven by Corporate items, which were a negative
EUR81 million compared to a positive EUR76 million in the
prior-year period. The prior-year period benefited from gains in
connection with compliance-related matters, including a gain of
EUR96 million, net of related costs, resulting from an agreement
with the provider of the Siemens' directors and officers liability
insurance and settlements with former members of Siemens'
Management Board and Supervisory Board, as well as a gain of EUR38
million related to the agreed recovery of funds frozen by
authorities. The current period included net charges related to
legal and regulatory matters. Results related to a major asset
retirement obligation swung from a net loss in the prior-year
period to a net gain in the current period.
Centrally carried pension expenses totaled a positive EUR19
million in the second quarter, compared to a negative EUR46 million
in the prior-year period. The change is due primarily to a positive
effect resulting from lower interest costs and a higher expected
return on plan assets.
Lower results for Eliminations, Corporate Treasury and other
reconciling items
Income before income taxes from Eliminations, Corporate Treasury
and other reconciling items was a negative EUR43 million in the
second quarter compared to a negative EUR33 million in the same
period a year earlier. The primary factor in the decline was
Corporate Treasury activities, particularly including changes in
the fair market value of interest rate and foreign currency
derivatives not qualifying for hedge accounting. This decline was
partly offset by positive effects related to the divestment of
financial assets.
DIVESTMENT OF SIEMENS IT SOLUTIONS AND SERVICES
As previously reported, Siemens and Atos Origin S.A. (Atos)
signed an option agreement during the first quarter of fiscal 2011
which granted Atos the right to acquire Siemens IT Solutions and
Services. On February 1, Atos exercised the option and signed a
final binding agreement to acquire Siemens IT Solutions and
Services. During the second quarter, the transaction was cleared
with the anti-trust authorities. Pending approval by Atos'
shareholder meeting, closing of the transaction is expected in the
fourth quarter of fiscal 2011.
Following signing, Siemens classified Siemens IT Solutions and
Services as held for disposal and as discontinued operations.
Siemens expects the transaction to have a substantial negative
earnings impact in fiscal 2011, in a mid- to high-triple-digit
million euro range, depending, among other things, on the final
value of the consideration at closing. In particular this negative
earnings impact is expected to consist of impairments, including
the previously reported goodwill impairment of EUR136 million
booked in the first quarter as well as further impairments on
long-lived assets of EUR464 million booked in the current quarter
of fiscal 2011. In addition to the transaction related results and
as previously disclosed, Siemens expects further substantial
charges in fiscal 2011 related to establishing Siemens IT Solutions
and Services as a separate legal group, including for carve-out
activities and personnel-related matters. Those charges reported
within discontinued operations amounted to EUR47 million in the
current quarter and to EUR104 million in the first half of fiscal
2011.
OUTLOOK FOR FISCAL 2011
We expect organic order intake to show a significant increase
compared to order intake of EUR74.055 billion for continuing
operations in fiscal 2010. Supported also by our already strong
order backlog, we expect revenue, which was EUR68.978 billion for
continuing operations in fiscal 2010, to return to mid-single-digit
organic growth. We further anticipate income from continuing
operations to be at least EUR7.5 billion. Income from continuing
operations in fiscal 2010 was EUR4.262 billion.
For fiscal 2010, orders, revenue and income from continuing
operations exclude results from OSRAM and Siemens IT Solutions and
Services which are reported as discontinued operations in fiscal
2011.
This outlook excludes effects that may arise from legal and
regulatory matters, among others possible effects from an ongoing
arbitration proceeding between Siemens and Areva S.A.
NOTE AND DISCLAIMER
All figures are preliminary and unaudited. This Earnings Release
should be read in conjunction with information Siemens published
today regarding legal proceedings.FinancialPublications 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 (after tax), or ROE (after tax); return on
capital employed (adjusted), or ROCE (adjusted); Free cash flow;
cash conversion rate, or CCR; adjusted EBITDA; adjusted EBIT;
adjusted EBITDA margins; earnings effects from purchase price
allocation, or PPA effects; 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 for fiscal 2010, which can be
found on our Investor Relations website or via the EDGAR system on
the website of the United States Securities and Exchange
Commission.
Today beginning at 09:00 a.m. CEST, the telephone conference at
which CEO Peter Löscher and CFO Joe Kaeser discuss the quarterly
figures will be broadcast live on the Internet at
www.siemens.com/conferencecall.
The accompanying slide presentation can also be viewed here, and
a recording of the conference will subsequently be made available
as well.
Starting at 10:00 CEST, Peter Löscher and Joe Kaeser will hold a
telephone conference in English for analysts and investors, which
can be followed live at www.siemens.com/analystconference.
This document contains forward-looking statements and
information - that is, statements related to future, not past,
events. These statements may be identified by words such as
"expects," "looks forward to," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "will," "project" or words of
similar meaning. Such statements are based on the current
expectations and certain assumptions of Siemens' management, and
are, therefore, subject to certain risks and uncertainties. A
variety of factors, many of which are beyond Siemens' control,
affect Siemens' operations, performance, business strategy and
results and could cause the actual results, performance or
achievements of Siemens to be materially different from any future
results, performance or achievements that may be expressed or
implied by such forward-looking statements. In particular, Siemens
is strongly affected by changes in general economic and business
conditions as these directly impact its processes, customers and
suppliers. This may negatively impact our revenue development and
the realization of greater capacity utilization as a result of
growth. Yet due to their diversity, not all of Siemens' businesses
are equally affected by changes in economic conditions;
considerable differences exist in the timing and magnitude of the
effects of such changes. This effect is amplified by the fact that,
as a global company, Siemens is active in countries with economies
that vary widely in terms of
growth rate. Uncertainties arise from, among other things, the
risk of customers delaying the conversion of recognized orders into
revenue or cancelling recognized orders, of prices declining as a
result of adverse market conditions by more than is currently
anticipated by Siemens' management or of functional costs
increasing in anticipation of growth that is not realized as
expected. Other factors that may cause Siemens' results to deviate
from expectations include developments in the financial markets,
including fluctuations in interest and exchange rates (in
particular in relation to the U.S. dollar and the currencies of
emerging markets such as China, India and Brazil), in commodity and
equity prices, in debt prices (credit spreads) and in the value of
financial assets generally. Any changes in interest rates or other
assumptions used in calculating obligations for pension plans and
similar commitments may impact Siemens' defined benefit obligations
and the anticipated performance of pension plan assets resulting in
unexpected changes in the funded status of Siemens' pension and
other post-employment benefit plans. Any increase in market
volatility, deterioration in the capital markets, decline in the
conditions for the credit business, uncertainty related to the
subprime, financial market and liquidity crises, or fluctuations in
the future financial performance of the major industries served by
Siemens may have unexpected effects on Siemens' results.
Furthermore, Siemens faces risks and uncertainties in connection
with: disposing of business activities, certain strategic
reorientation measures; the performance of its equity interests and
strategic alliances; the challenge of integrating major
acquisitions, implementing joint ventures and other significant
portfolio measures; the introduction of competing products or
technologies by other companies or market entries by new
competitors; changing competitive dynamics (particularly in
developing markets); the risk that new products or services will
not be accepted by customers targeted by Siemens; changes in
business strategy; the interruption of our supply chain, including
the inability of third parties to deliver parts, components and
services on time resulting for example from natural disasters; the
outcome of pending investigations, legal proceedings and actions
resulting from the findings of, or related to the subject matter
of, such investigations; the potential impact of such
investigations and proceedings on Siemens' business, including its
relationships with governments and other customers; the potential
impact of such matters on Siemens' financial statements, and
various other factors. More detailed information about certain of
the risk factors affecting Siemens is contained throughout this
report and in Siemens' other 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 neither intends to, nor assumes any obligation to, update
or revise these forward-looking statements in light of developments
which differ from those anticipated.
For tables omitted, please go to
http://www.siemens.com/press/pool/de/events/2011/corporate/2011-q2/2011-q2-earnings-release-e.pdf
For the full report, please go to
http://www.siemens.com/investor/pool/en/investor_relations/financial_publications/speeches_and_presentations/q22011/q2_interim_report.pdf
Contact data:
Media Relations:Alexander BeckerPhone: +49 89 636-36558E-mail:
becker.alexander@siemens.com
Dr. Constantin BirnstielPhone: +49 89 636-33032E-mail:
constantin.birnstiel@siemens.com
Investor Relations Munich Office:Phone: +49 89 636-32474E-mail:
investorrelations@siemens.com
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