Siemens sees success with technology focus
The latest results at Siemens saw orders of €71.4bn and revenue €62.3bn in 2021. This is an 11 percent growth in revenue on 202, and profits grew 59 percent to €6.7bn. This is also substantially up on the pre-pandemic 2019 revenue of €58.4bn.
For the coming year, Siemens expects mid-single-digit comparable revenue growth with orders already up 20 percent in orders on 2020 and a book-to-bill ratio of 1.15.
The company reported profit gains at all four of its Industrial Businesses, up 17 percent to €8.8bn and across all regions, underscoring its successful transformation into a focused technology company and highlighting the difference with the heavy engineering part of the business. It says the effects of the pandemic and ongoing supply chain risks for electronic components and raw materials were successfully mitigated.
- Siemens restructures for power and smart infrastructure
- Siemens looks to digital twin, IoT to drive growth
- New CTO for Siemens Digital Industries
- Siemens in $700m supply chain buy
The growth was led by Digital Industries, which includes Siemens EDA and the IoT business, and Mobility.
“We achieved a very successful start as a focused technology company. In a challenging environment, we have won market share and clearly exceeded our net income guidance,” said Roland Busch, President and Chief Executive Officer of Siemens AG. “This momentum will continue in fiscal 2022. We’re ideally positioned to support our customers and benefit from the major growth drivers of digitalization and sustainability. We have the right strategy and – above all – the best team. I’m personally very grateful for the outstanding dedication of our team worldwide.”
Digital Industries expects comparable revenue growth of 5 percent to 8 percent in 2022 and a profit margin of 19 percent to 21 percent, including known headwinds of up to two percentage points associated with the strategic transition to Software-as-a-Service (SaaS) in parts of its large software business.
Smart Infrastructure expects comparable revenue growth of 5 percent to 8 percent. The profit margin is expected to be 12 percent to 13 percent.
Mobility expects revenue growth of 5 percent to 8 percent and a profit margin is expected to be 10.0 percent to 10.5 percent.
Having spun out Siemens Energy in 2020, the company generated €1.5bn from the sale of its Flender business, divestment of its stakes in Bentley Systems and ChargePoint Holdings, and revaluation of its stake in Thoughtworks Holding. It has spun out its Yunex Traffic technology business as well as its large drives and logistics operations and seen the IPO of its Fluence energy storage joint venture with AES. At the same time it is acquiring component information firm Supplyframe, medial technology firm Varian, rail software provider Sqills and Indian low voltage technology supplier C&S Electric.
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