Munich, 2008-Nov-13
“We have done our homework. We did it more quickly than expected. That’s a great help to us now,” commented Siemens CEO Peter Löscher. “Coming out of our transition year in fiscal 2008, we confront new challenges in the macroeconomic environment. From our position of relative strength we intend to win market share profitably. Organic growth remains our focus, and despite the macroeconomic adversity we confirm our growth target. It has become clearly more ambitious to reach our income guidance for fiscal 2009. But we stick to it. As to the effects of the financial crisis on the real economy, we will assess them quarter by quarter.” Peter Löscher, President and Chief Executive Officer of Siemens AG.
Financial highlights:
Revenue rose 7% year-over-year, to €21.651 billion, and orders were €22.205 billion, up 4% from the fourth quarter a year earlier. On an organic basis, revenue increased 9% and orders were up 6%.
Total Sectors profit came in at €1.485 billion after transformation costs of €325 million. Continuing operations posted a loss of €1.259 billion, after total transformation costs of €1.539 billion (pretax), a provision of approximately €1 billion related to legal and regulatory matters, and an endowment of €390 million (pretax) to the Siemens Foundation.
Net income was a negative €2.420 billion, including a loss of €1.161 billion in discontinued operations related mainly to divestment of a 51% stake in Siemens Enterprise Communications (SEN). EPS was a negative €2.85.
Free cash flow from continuing operations was €2.786 billion, a 9% increase compared to the strong fourth quarter a year earlier.
Siemens met operating guidance for the full fiscal year, and proposed a dividend of €1.60 per share compared to €1.60 per share in fiscal 2007.
Fiscal 2008 net income rose to €5.886 billion, while income from continuing operations was €1.859 billion, well below the prior-year level due primarily to the factors mentioned above. Orders and revenue increased 11% and 7%, respectively, compared to fiscal 2007.
Please read the complete Earnings Release in the attached PDF:
Earnings Release
All figures are preliminary and unaudited. This Earnings Release should be read in conjunction with information Siemens published yesterday regarding legal proceedings. More detailed disclosure, particularly regarding legal proceedings, is provided in the annual report.
Earnings before interest and taxes, or EBIT (adjusted); Earnings before interest, taxes, depreciation and amortization, or EBITDA (adjusted); Return on capital employed (ROCE); Return on equity (ROE); Free cash flow; and Cash conversion rate are non-GAAP financial measures. These non-GAAP financial measures should not be viewed in isolation as alternatives to measures of our financial condition, results of operations or cash flows as presented in accordance with IFRS in our Consolidated Financial Statements. Information for reconciliation to the most directly comparable IFRS financial measures is available on our Investor Relations website under www.siemens.com/ir -> Publications & Events. “Profit Total Sectors” is reconciled to “Income from continuing operations before income taxes” in the table “Segment Information.”
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 our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect our 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 forwardlooking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas); the behavior of financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and further deterioration of the capital markets; the commercial credit environment and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that we serve, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings, especially the corruption investigations we are currently subject to in Germany, the United States and elsewhere; the potential impact of such investigations and proceedings on our ongoing business including our relationships with governments and other customers; the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about certain of these factors is contained throughout this report and in our 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 does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
Reference Number: AXX200811.8
