Siemens shrugs off Covid-19 with new CEO

Siemens shrugs off Covid-19 with new CEO

Business news |
By Nick Flaherty

Power systems giant Siemens has upgraded its guidance for 2021 after a bumper quarter at the end of 2020.

With new CEO Roland Busch taking over from Joe Kaeser this week, the first quarter quarter saw revenue of €14.1bn, up 7 percent, with orders increasing to €15.9bn. Profits rose to €1.5bn, up from €1.1bn. Net profit for 2021 expected to be between €5.0 billion and €5.5bn, considerably up from its previous expectation of €4.0bn.

“All of this provides the basis for our strong start to the new fiscal year. As a focused technology company, we’re helping our customers to transform their businesses every day – particularly in these difficult times. For this, we have the right team and the right setup at the right time,” said Busch.

However the company continues to expect a complex macroeconomic environment influenced by Covid-19. It sees improving conditions in some of its businesses and geographic regions during the last quarter and so upgraded its guidance with growth approaching 10 percent

Digital Industries, which includes the Siemens EDA division (formerly Mentor), now expects turnover to grow clearly year-over-year instead of modestly. A key part of this will be driven by digital twin technology, it says.

Smart Infrastructure continues to expect moderate growth in fiscal 2021, while the mobility division continues to anticipate mid-single-digit growth.

As part of its Vision 2020+, Siemens sold motor drive maker Flender GmbH to the Carlyle group in October 2020 for €2.0bn, less than the division’s sales, and that will complete shortly.

“On behalf of the Supervisory Board and all Siemens employees, I’d like to thank Joe Kaeser for his dedication to the company, for his more than 40 years of tireless commitment, for his life’s work!” said Jim Hagemann Snabe who was reelected as chairman of the supervisory board. “At the same time, Roland Busch is the ideal choice to further drive the transformation of Siemens AG. In this effort, the merging of the virtual and real worlds will play a key role. The aim now is to renew the technological backbone of the economy and society.”

Two new members of the supervisory board are Grazia Vittadini, Chief Technology Officer of Airbus and member of the Airbus Executive Committee, and Kasper Rørsted, CEO of spots company adidas AG.

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