Revenue and orders for the second quarter each increased 15% on a comparable basis, excluding currency translation and portfolio effects
On a nominal basis, revenue climbed 14% year-over-year, to €19.4 billion; orders rose 13%, to €23.6 billion, driven by substantially higher volume from large orders in Mobility; the book-to-bill ratio was 1.22
Profit Industrial Business surged 47%, to €2.6 billion, with a profit margin of 14.2%; Digital Industries and Smart Infrastructure both delivered sharp increases and their highest-ever quarterly profit, while Mobility posted a profit compared to a loss in Q2 FY 2022 which included a €0.6 billion impact resulting from sanctions imposed on Russia
As a result net income rose to €3.6 billion, also benefiting from reversal of an impairment of Siemens’ stake in Siemens Energy AG resulting in a tax-free gain of €1.6 billion; corresponding basic earnings per share (EPS) were €4.39 and EPS before purchase price allocation accounting (EPS pre PPA) were €4.57, each including €2.01 per share related to the impairment reversal
Excellent Free cash flow from continuing and discontinued operations, reaching €2.3 billion for the quarter
“Siemens continues its outstanding performance, delivering several records, including impressive margin increases and all-time highs in profit for Digital Industries and Smart Infrastructure, as well as another record in order backlog,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “Our very strong results show that we have the right strategy, the right technology, and the right team to support our customers in becoming more competitive, resilient and sustainable.” Roland Busch, President and Chief Executive Officer of Siemens AG
“We have delivered what we promised: We converted our fantastic revenue growth into high profit and ultimately into strong free cash flow. That is execution at its best, giving us the confidence to raise our guidance,” said Ralf P. Thomas, Chief Financial Officer of Siemens AG. Ralf P. Thomas, Chief Financial Officer of Siemens AG
Outlook
Following the strong first half of fiscal 2023, we again raise our outlook for the fiscal year.
For the Siemens Group we now expect comparable revenue growth, net of currency translation and portfolio effects, in the range of 9% to 11% (previously expected at 7% to 10%) and continue to expect a book-to-bill ratio above 1.
Digital Industries now expects for fiscal 2023 to achieve comparable revenue growth of 17% to 20% (previously expected at 12% to 15%). The profit margin is now expected to be 22.5% to 23.5% (previously expected at 20% to 22%).
Smart Infrastructure now expects for fiscal 2023 comparable revenue growth of 14% to 16% (previously expected at 9% to 12%). The profit margin is now expected to be 14.5% to 15.5% (previously expected at 13.5% to 14.5%).
Mobility now expects for fiscal 2023 comparable revenue growth of 10% to 12% (previously expected at 6% to 9%). The profit margin is continued to be expected in the range of 8% to 10%.
We now expect this profitable growth of our industrial businesses to drive an increase in EPS pre PPA to a range of €9.60 to €9.90 (previously expected at €8.90 to €9.40) in fiscal 2023. Including €2.01 per share in the second quarter of fiscal 2023 resulting from partial reversal of the previous impairment on Siemens’ stake in Siemens Energy AG, EPS pre PPA is expected in a range of €11.61 to €11.91.
This outlook excludes burdens from legal and regulatory matters and material impairments as well as reversals of material impairments.
