Siemens Shares Climb After 4Q Earnings Beat Views, Dividend Raise
By Pierre Bertrand
Siemens AG shares climbed Thursday after the company raised its
dividend on fourth-quarter earnings that beat analysts'
expectations, driven by profit increases at all of its industrial
At 0913 GMT shares traded 7% higher at EUR129.66.
The German industrial company's quarterly profit rose to 2.70
billion euros ($2.81 billion) from EUR1.17 billion for the
prior-year period on revenue that grew 18% on a reported basis to
Net profit for the full fiscal year that ended in September came
in at EUR3.72 billion compared with EUR6.16 billion in fiscal
The Munich-based company said it had orders for the fourth
quarter valued at EUR21.82 billion, up from the EUR19.07 billion
for the prior-year period.
The result was above analysts' expectations who saw
fourth-quarter net profit at EUR2.55 billion, revenue at EUR19.3
billion, and orders at EUR19.89 billion, according to a
There was helped by revenue growth at all of the company's
industrial businesses, led by double-digit growth at its digital
industries and smart infrastructure divisions, Siemens said, adding
that currency effects contributed 8 percentage points to
Orders were boosted by strong demand for data centers and
digital building services at its smart infrastructure unit, while
digital industries benefited from larger software contracts,
"Strong demand continues for our hardware and software
offerings, including higher than expected growth for our digital
business revenue," Siemens Chief Executive Roland Busch said.
The company added that it proposes to increase its dividend to
EUR4.25 from EUR4.0 a share.
For fiscal 2023, Siemens said it expects comparable revenue
growth excluding currency translation and portfolio effects in the
range of 6% to 9% and a book-to-bill ratio of above 1.
The company added that it expects fiscal 2023 earnings per share
from net income before purchase price allocation accounting in a
range of EUR8.70 to EUR9.20.
Siemens added that it is planning to create a new motor and
large-drive business which it will work on consolidating during
fiscal 2023 with the intent to separate it from Siemens.
The new company will be made up of Sykatec, the whole of
Siemens' large drives applications business, and will include low
voltage motors, geared motors and Weiss Technologies units which
will be carved out from Siemens' digital industries division.
Siemens said the new company isn't a sign that it is exiting its
core motion-control business, and that it is keeping all options
open over whether the new business will be sold, spun off or
Write to Pierre Bertrand at firstname.lastname@example.org
(END) Dow Jones Newswires
November 17, 2022 04:47 ET (09:47 GMT)
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