Siemens AG - Interim Results
July 21 1997 - 6:36AM
UK Regulatory
RNS No 6506b
SIEMENS AG
21st July 1997
Interim report for the period October 1, 1996 to June 30 1997
Communications and information segments are growth drivers
International markets continue to boom
During the first nine months of the current fiscal year, the communications
segment and Siemens Nixdorf Informationssysteme AG (SNI) continued to drive
growth at Siemens. Following a slow start at the beginning of the year, the
components segment also gathered momentum. Buoyant business in Americas
and Asia-Pacific more than compensated for a light decline in Germany. Overall,
new orders rose 14 %, and sales 10%. Just over two percentage points of this
growth was attributable to currency translation effects. Net income for the
period was DM1.7 billion, a 3% increase over last year.
In the period under report, Siemens posted worldwide orders for DM82.8
(1996: DM72.8) billion, and sales of DM71.2 (1996: DM64.5) billion. Growth was
generated exclusively by international business, where orders rose 23% to DM55.6
(1996: DM45.1) billion. This growth was favored some four percentage points by
positive currency translation effects, and around three percentage points by the
first-time consolidation of new companies. Sales climbed 18% to DM46.3
(1996: DM39.3) billion. Business in Germany in contrast, edged off slightly:
domestic orders totaled DM27.2 (1996: DM27.7) billion, and sales reached DM24.9
(1996: DM25.2) billion. International business accounted for 67% of the total
volume.
Siemens profited from the continuing strong economies in North and South
America, pushing up orders 26% to D16.5 (1996: DM13.1) billion. In the U.S.
alone, business jumped 20% to DM10.7(1996: DM8.9) bilion. With orders totaling
DM3.2 billion, Brazil is the second strongest region in the Americas after the
U.S. Once again, the dynamic Asia-Pacific region generated high growth: orders
soared 45% to DM11.5 (1996: DM8.0) billion. Outside Germany, business in Europe
also flourished, with orders climbing 13% to DM22.9 (1996: DM20.2) billion. A
stabilized economic environment and further progress in expanding company
activities in Central and Eastern Eurpoe also contributed to this surge.
The communications, transportation, and information business segments again
posted double-digit growth. Both Public Communication Networks (ON) amd Private
Communications Systems (PN) saw further vigorous growth in their international
business: ON already does roughly 80% of its business outside of Germany. PN's
business in mobile phone and applications was strong. International markets also
sparked growth in Transportation Systems (VT) and Automative Systems (AT);
both were able to further boost their previous year's solid domestic figures.
SNI achieved high growth in its international business, particularly in its PC,
solutions, and service units. Osram profited from more favourable currency
constellations and continued to fortify its strong competitive position in the
Americas and Asia-Pacific.
The health care and components segments returned to higher growth rates.
Semiconductors posted double-digit growth and gathered momentum again. The
components segment's two other groups, Passive Components and Electron Tubes,
and Electromechanical Components, also recorded surges in their international
business. Medical Engineering's solid international business more than
compensated for stagnating domestic demand.
Power Generation (KWU) has not yet matched its high previous year's levels,
which had been boosted by major projects. Power Transmission and Distribution,
on the other hand, more than compensated for slack domestic demand with a robust
volume of international business. The industry segment continued to feel the
effects of Germany's weak domestic capital goods market and its recessive
construction industry. While favourable international trends were not quite
enough to offset the weak level of domestic orders, sales improved lightly.
At June 30, 1997, Siemens had approximately 386,000 employess worldwide,
approximately 7,000 or 2% more than at close of fiscal 1996 on September 30. The
increase of 10,000 employees outside of Germany was largely attributable to the
first-time consolidation of new companies. The domestic workforce was cut by
roughly 3,000 through divestures and spin-offs.
Capital spending totaled DM6.3 (1996: DM4.9) billion for the period. Investments
in acquisitions were boosted by the purchase of AEG Electrocom, Constance
(Germany), and Irwing (U.S.). Additions to the company's semiconductor
production capacity pushed up the level of capital expenditures for the period.
Net income was DM1.705 billion, up from DM1.651 billion in the same period
last year. Lower earnings in Semiconductors, Medical Engineering and
Transportation Systems were offset by higher income in most of the other
operating groups.
Development of Siemens groups worldwide (incl. intersegment shipments)
(Basic figures for the period from October 1, 1996 to June 30, 1997; in
Billion DM)
New Orders Sales
10/95-6/96 10/96-6/97 % 10/95-6/96 10/96-6/97 %
Power
Generation (KWU) 6.5 6.3 -3 4.9 4.4 -10
Power Transmission
and Distribution (EV) 4.3 5.0 +17 3.7 4.0 +8
Industrial and
Building Systems
(ANL) 7.1 7.0 -1 6.1 6.3 +4
Drives and Standard
Products (ASI) 6.5 6.7 +3 6.2 6.4 +2
Automation (AUT) 5.3 5.4 +0(1) 4.7 5.4 +7(1)
Public Communication
Networks (ON) 10.4 13.1 +26 7.8 9.9 +28
Private Communication
Systems (PN) 6.2 8.2 +12(1) 6.0 7.8 +12(1)
Defence Electronics
(SI) 1.2 0.7 -36(1) 1.0 0.9 -7(1)
Siemens Nixdorf
Informationssysteme
(SNI) 10.2 11.6 +13 9.7 10.8 +11
Transportation Systems
(VT) 3.1 5.1 +66 2.6 2.6 +1
Automotive Systems
(ST) 3.0 3.4 +13 3.0 3.4 +13
Medical Engineering
(MED) 5.1 5.7 +12 5.0 5.1 +2
Semiconductors (HL) 3.8 4.5 +19 3.4 4.1 +20
Passive Components
and Electron Tubes
(PR) 1.6 1.8 +17 1.5 1.6 +8
Electromechanical
Components (EC) 1.0 1.0 -4 1.0 0.9 -8
Osram 4.3 4.7 +11 4.3 4.7 +11
(1) Comparable due to reorganization.
Basic figures for the period from October 1, 1996 - June 30, 1997
1.10.95 1.10.96
to to Change
30.6.96 30.6.97
Pos 1 2 3
1 Auftragselngang (Mrd.DM)
New orders 72.8 82.8 +14%
2 Domestic business 27.7 27.2 -2%
3 International business 45.1 55.6 +23%
4 Umsatz (Mrd.DM)
Sales 64.5 71.2 +10%
5 Domestic business 25.2 24.9 -1%
6 International business 39.3 46.3 +18%
30.9.96 30.6.97 Change
Pos 4 5 6
7 Mitarbeiter (Tsd.)
Employees 379 386 +2%
8 Domestic operations 203 200 -1%
9 International operations 176 186 +6%
1.10.95 1.10.96
to to Change
30.6.96 30.6.97
10 Investitionen (Mrd.DM)
Capital spending 4.9 6.3 +28%
11 Net income after taxes 1,651 1,705 +3%
END
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