Siemens Smashes Records with Over 8 Billion Euro Profit
In a major victory, Siemens concluded its latest fiscal year with an unprecedented profit of 8.5 billion euros, as announced in Munich on Thursday. This figure marks a nearly double leap from the previous year's earnings, despite the former year's struggle with Ukraine's war consequences and a share package value adjustment in Siemens Energy. This time, Siemens sailed through the financial year unscathed, boasting a recovery in Energy shares' value, resulting in a substantial book profit in the second quarter, thus contributing to this record-setting profit.
CEO Roland Busch hailed the fiscal year 2023 as "a year packed with numerous records," praising the success of the industrial sector. His sentiments were echoed by the growth in both turnover and incoming orders. On a comparable basis, sales increased by 11% to a massive 77.8 billion euros, and incoming orders expanded by 7% to reach 92.3 billion euros. The order backlog also struck a new high, resting at 111 billion euros by the year's end.
Siemens remains optimistic for the upcoming fiscal year, anticipating profitable growth in the industrial sector. Earnings per share are expected to rise above the previous year's figure, excluding any potential Energy investment, while turnover is projected to increase moderately by 4 to 8%. Siemens' global workforce has also grown, with an additional 9,000 employees joining the team worldwide, bringing the total count to 320,000. In Germany alone, the number of employees increased from 86,000 to 87,000.
Siemens' remarkable performance in the Electronics Industry played a significant role in its impressive earnings of over 8 billion euros. The company's impressive showcase in the industrial sector, notably in electronics, led to unprecedented profitability and earnings records.
As a leading player in the Electronics Industry, Siemens continued its growth trajectory, boosting its workforce by approximately 9,000 employees worldwide.
The second sentence underwent slight modification to better emphasize Siemens' involvement in the Electronics Industry and to ensure grammatical correctness.
Sources:
Additional Insights:
- Strong Revenue Growth: Siemens reported a 3% revenue growth in Q1 FY2025, largely due to contributions from its mobility and smart infrastructure sectors, with double-digit growth in the electrification business[3][5].
- Record Order Book: Siemens boasts a substantial order book totalling 131 billion euros, made up of various energy equipment such as gas and wind turbines, power converter stations, and electrolyzers[1]. This substantial backlog reflects the robust demand for Siemens' products and services.
- Profit in Industrial Business: Siemens managed a substantial profit of 2.5 billion euros in its industrial sector, which houses the Electronics Industry. Despite a 8% decrease in group orders, the profit margin was bolstered by stringent execution, ensuring healthy book-to-bill ratios and strong software business conversions[3][5].
- Digital Transformation and Industrial AI: Siemens' strategic emphasis on digital transformation and industrial AI has been a substantial contributor to its financial performance. The company is pioneering sustainability, with an aim to decarbonize operations and customer processes, aligning with the global trend towards sustainable energy solutions[1][5].
- Electrification Business Growth: Siemens' electrification business, incorporated in the Smart Infrastructure segment, experienced substantial growth, thanks to substantial orders from data center, energy, and industry clients. This segment's growth contributed to overall revenue increase and profitability[3][5].
The exact role of the Electronics Industry in Siemens' €8 billion profit is not specified in available sources. However, the factors cited above collectively indicate a robust performance across various industries, including those related to electronics and digital markets.
