RNS No 1675j
SIEMANS AG
27th January 1998
INTERIM REPORT FOR THE PERIOD OCTOBER 1, 1997 TO DECEMBER 31, 1997
Strong growth in international markets continues - Sales also up in Germany
Siemens AG, Berlin and Munich, posted strong growth in the first quarter of
fiscal 1998, particularly in its international markets. Following the boom of
recent years, the company's business in Asia has eased off as a result of the
region's economic difficulties. In Germany, positive trends registered in the
latter part of fiscal 1997 have continued, and Siemens' industry segment, in
particular, is profiting from the domestic upswing. New orders rose 10% for the
period, and sales were up 19%. Net income climbed 19% to DM569 million, compared
with DM478 million the previous year.
Worldwide, Siemens booked orders for DM29.8 (1997: DM27.0) billion.
International business remained buoyant: orders surged 24% to DM21.6 (1997:17.5)
billion. This growth came from a substantial improvement in the standard
products business, since orders for major projects remained below last year's
high level. Roughly 3.5 percentage points of the growth is attributable to
positive currency translation effects, primarily due to the stronger dollar.
The greatest gains were made in Europe outside Germany: orders soared 32% to
DM9.3 (1997: DM7.1) billion. Siemens achieved above-average growth in
Scandinavia, the Benelux countries, Britain, and France. The company also
further boosted its market position in Eastern Europe. In North and South
America, Siemens profited from the sustained economic boom. A number of major
contracts in the energy segment ensured strong growth in the U.S., Brazil, and
Argentina. Orders in the U.S. rose 20% to DM3.8 billion, orders in Brazil and
Argentina climbed to DM1.6 billion and DM0.6 billion, respectively. As
economies and growth rates cooled in the Asia-Pacific region, orders edged off
16% to DM3.6 billion. This decline must also be seen against last years
unusually high level, which was boosted by a number of major project orders,
including the Tanayong rapid-transit system in Bangkok, Thailand.
In Germany, two special, one-time factors accounted for the 14% decline in
orders to DM8.2 (1997: DM9.5) billion. For one, the sale of the'i-center'
wholesale installation organization, the dental business, and the defense
electronics activities accounted for five percentage points of this total. For
another, the high level of major contracts in the Transportation Systems Group
the previous year accounted for nine percentage points' difference. On the
positive side, Germany's recovering economy stimulated business in the company's
industry segment, which recorded double-digit growth rates.
Worldwide sales at Siemens climbed to DM24.9 billion in the first quarter,
compared with DM20.9 billion a year earlier. Outside Germany, sales rose 27% to
DM16.6 (1997: DM 13.0) billion, fueled in particular by buoyant 39% growth in
North and South America and - as a result of the high level of orders - a 37%
increase in the Asia-Pacific region. Growth drivers were the industry,
communications, and information segments. Sales in Germany turned around,
showing a 5% increase to DM8.3 (1997: DM7.9) billion. The industry segment in
particular benefited from the emerging recovery in the capital goods sector.
The operating units showed mixed trends in their order levels. The situation in
the industry segment - which began fiscal 1998 in a new constellation - improved
considerably. Profiting from improved economic conditions, the segment showed
double-digit growth in both its international and domestic business. In the
communications segment, the Public Communication Networks Group (OEN) more than
compensated for the expected sharp decline in its domestic business - due to the
completion of the digitization project for Deutsche Telekom - with sustained
dynamic growth in its international markets. The Private Communication Systems
Group (PN) recorded above-average growth both in Germany and abroad. The same
was true for the components segment. The Semiconductors Group (HL), in
particular, substantially expanded its business volume despite ongoing price
erosion. In the health care segment, growth continued to be generated primarily
in international markets; orders also turned around in Germany. The
transportation segment showed mixed trends: while the Automotive Systems Group
(AT) continued to show strong growth, the Transportation Systems Group (VT)
could not match last year's high levels, which had been boosted by major
contracts in Germany and Thailand. Siemens Nixdorf Informationssysteme AG (SNI)
posted a double-digit increase in orders for the quarter, generated by a
substantial plus in its international markets. Strong business outside Germany
accounted for high growth in both of the energy segment groups, Power Generation
(KWU) and Power Transmission and Distribution (EV). At Osram, international
business also accounted exclusively for its growth.
At December 31, 1997, Siemens had approximately 386,000 employees worldwide,
unchanged from the previous year. The decline in the company's domestic
workforce to a total of 192,000 was exclusively due to the sale of the Defence
Electronics Group, the dental business, the lighting systems sector, and the
i-center business. Had these factors been excluded, the number of employees in
Germany would have remained unchanged. Siemens had 194,000 employees located
outside Germany.
Capital spending in the first quarter totaled DM1.9 (1997: DM2.0) billion.
This figure does not include expenditures for the announced acquisitions of the
industrial activities of Electrowatt AG and the conventional power plant
business of Westinghouse, both of which will be booked later in the fiscal year.
The increase in net income to DM569 (1997: DM478) million for the quarter is in
part attributable to higher earnings in the industry segment. This figure does
not yet include extraordinary gains from the sale of a number of business
activities; after taxes, these gains will total approximately DM500 million.
Basic figures for the period from October 1, 1997 - December 31, 1997
1.10.96 1.10.96 Change
to to Variation
31.12.96 31.12.96
Pos 1 2 3
1 New orders 27,0 29,8 10%
2 Domestic business 9,5 8,2 -14%
3 International business 17,5 21,6 24%
1.10.96 1.10.96 Change
to to Variation
31.12.96 31.12.96
4 Sales 20,9 24,9 19%
5 Domestic business 7,9 8,3 5%
6 International business 13,0 16,6 27%
30.9.97 31.12.97 Change
Variation
Pos. 4 5 6
7 Employees 386 386 0%
8 Domestic operations 197 192 -3%
9 International operations 189 194 3%
1.10.96 1.10.97 Change
to to Variation
31.12.96 31.12.97
10 Capital spending 2,0 1,9 -6%
11 Net income 478 569 +19%
DEVELOPMENT OF SIEMANS GROUPS WORLDWIDE (INCL. INTERSEGMENT SHIPMENTS)
Basic figures for the period from October 1, 1997 to December 31, 1997; in
Billion DM)
New Orders Sales
10/96 10/97 +% 10/96 10/97 +%
-12/96 -12/97 - -12/96 -12/97 -
Power Generation (KWU) 2,4 3,0 +27 1,2 1,3 +3
Power Transmission and
Distibution (EV) 1,4 2,1 +36* 1,2 1,2 +4*
Industrial Projects and
Technical Services (ATD) 2,4 2,6 +8 1,8 2,1 +18
Production and Logistics
Systems (PL) 0,2 0,5 +28 0,1 0,6 +49
Automation & Drives (A&D) 3,0 3,5 +16 2,7 3,0 +10
Public Communication
Networks (ON) 4,5 4,8 +7 2,8 4,0 +41
Private Communication
Systems (PN) 2,3 3,4 +23* 2,2 3,0 +16*
Siemans Nixdorf Information
Systems (SNI) 3,6 4,0 +12 3,3 3,8 +16
Transportation Systems (VT) 2,1 0,8 -62 0,8 1,1 +44
Automotive Systems (AT) 1,0 1,3 +23 1,0 1,3 +23
Medical Engineering (MED) 1,8 1,8 +21* 1,6 1,3 +1*
Semiconductors (HL) 1,2 1,7 +47 1,0 1,6 +49
Passive Components and
Electron Tubes (PR) 0,6 0,7 +26 0,5 0,6 +26
Electromechanical
Components (EC) 0,3 0,4 +27 0,3 0,3 +23
Osram 1,5 1,7 +11 1,5 1,7 +11
* Comparable due to acquisitions, divestments and reorganizations
END
QRFNFKFXASXPEEN
Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jun 2024 to Jul 2024
Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jul 2023 to Jul 2024
