Siemens U.S. sales up 12% and orders intake up 8% in fiscal 2011

11/11/2011

WASHINGTON -- Siemens AG today announced that it has ended fiscal 2011 with record operating results, achieving its outlook for the full year. For fiscal 2012, Siemens expects moderate organic revenue growth, with orders again exceeding revenues for a book-to-bill ratio of well above 1.

"We are well-positioned for moderate revenue growth next year and expect to surpass the EUR 100 billion revenue threshold in the medium term," said Siemens AG CEO Peter Loescher.

For fiscal 2011, global orders for Siemens AG climbed 16%, to EUR 85.6 billion (almost $120 billion) on an actual basis. Revenues rose 7% on an actual basis, to EUR 73.5 billion (approximately $100 billion.) Income from continuing operations reached EUR 7 billion (almost $10 billion.) 

In the U.S., sales were up 12% to $20 billion and orders grew 8% to almost $22 billion. 

"The U.S. is, by far, the single largest market for Siemens. We delivered strong growth over the prior year and can be proud of what we achieved financially. We won some very prestigious orders this year," said Eric Spiegel, president and CEO of Siemens Corporation.

The Energy sector contributed strongly to Siemens' results. Both orders and revenues increased at double-digit rates. Of note, the power transmission and distribution businesses in the Energy sector showed excellent growth. Recently, the company won a contract to install a turnkey back-to-back link to connect the power supply networks of New Jersey and New York. In the future it is estimated that an additional 660 megawatts of controlled electric power will be transmitted via a high-voltage cable link across the Hudson River from New Jersey to boost the power supply of New York. The total contract value for Siemens and its partner Prysmian is approximately $400 million.

For the U.S. Industry sector, orders growth for the year was broad-based and particularly strong in the Drive Technologies division and especially strong amongst customers in vertical markets like oil & gas, mining and services. The division will be delivering the components for the new electric locomotives that Siemens is building for Amtrak. The Industry Automation and Building Technologies divisions continue to contribute significantly to new orders volume with sustainable growth year-over-year in fiscal 2011. Light rail orders from the Mobility division contributed to the sector's success with a $153 million order for 41 light rail vehicles for the City of Minneapolis, Minn., as well as an $83 million order for 19 vehicles in Houston, Texas.

Siemens' U.S. Healthcare sector remained steady in a challenging business environment. Healthcare received several big orders including one worth more than $100 million for Soarian Revenue Cycle. In the final quarter of fiscal 2011, Hawaii Health Systems Corporation (HHSC) finalized a $28.7 million contract with Siemens Healthcare that provides the public-hospital system on Oahu and neighboring islands with a complete hospital information system including a succession of integrated electronic medical record (EMR) applications.