Siemens Posts Record Profit for Fiscal 2010
MUNICH -- In fiscal 2010, Siemens generated the largest operating profit in its history. Total Sectors profit rose four percent to €7.8 billion. Net income climbed 63 percent to €4.1 billion. Growth picked up speed once again during the year. While declining in the first two quarters, new orders and revenue rebounded sharply in the second half-year. For the full fiscal year, new orders increased by three percent to €81.2 billion, while revenue stabilized at €76 billion.
"We completed fiscal 2010 very successfully. We're coming out of the economic downturn with full momentum. Our growth is gaining speed. Operationally, we achieved record profit twice in a row. We expect to take this positive momentum into the next fiscal year. We have to keep winning, order by order," said Siemens President and CEO Peter Löscher.
With continuing improvement in its markets, Siemens expects organic order intake to increase substantially in fiscal 2011, compared to fiscal 2010. Supported by an already strong order backlog, the company expects revenue to return to moderate organic growth. Siemens also anticipates that income from continuing operations will exceed the results reported for fiscal 2010 by at least 25 to 35 percent. This outlook excludes effects that may arise from legal and regulatory matters.
After the Siemens Sectors had achieved a record total profit in fiscal 2009, the company improved its performance once again in fiscal 2010, despite impairment charges of some €1.2 billion in the Healthcare Sector. The Energy Sector made the largest contribution, generating profit of €3.6 billion -- a seven percent increase year-over-year. The Sector's fossil power plant business and, to a lesser extent, its business in power transmission systems were the major drivers. Profit at the Industry Sector increased by 29 percent to €3.5 billion, with the short-cycle businesses of the Industry Automation Division and Osram developing exceptionally well. Profit at the Healthcare Sector totaled €748 million, including the above-mentioned impairment charges of €1.2 billion in the diagnostics business. The Healthcare Sector profited from a strong year in its imaging devices business, which -- after the fossil power plant business -- made the largest contribution to company profit.
Overall, Siemens' strong second half-year pushed new orders for all of fiscal 2010 above the prior-year level. Of the company's 14 divisions, Renewable Energy had the strongest order growth. Siemens' revenue, which also stabilized in the course of fiscal 2010, was only slightly below the prior-year level. The company expanded its business in ecofriendly products and solutions. Revenue from its Environmental Portfolio rose to about €28 billion from some €27 billion in fiscal 2009, on a comparable basis. While declining slightly in Europe, the Commonwealth of Independent States, the Middle East and the Americas, revenue jumped a total of ten percent in the Asia, Australia region. Growth was particularly strong in the emerging countries. Revenue in India climbed 17 percent, in China 12 percent and in Brazil 32 percent.