Siemens's revenue and market capitalization

Q4 and full year 2020/21 financial performance review

In the fourth quarter of 2020/21, the Siemens Group's business was conducted in a difficult environment marked by problems with the supply of electronic components. This situation had an impact on the entire industrial sector and led to a drop in production at many companies. This did not go unnoticed in the German company's quarterly results.

In the period from July to September 2021, the German conglomerate had posted a net profit of €1.3 billion, down 29% compared to the last quarter of 2019/20. This downward trend was also noted in its adjusted operating profit (EBITA). EBITA fell by 14% to €2.3 billion in the quarter under review.

In contrast, the group's turnover jumped in the last three months of the financial year 2020/21. 19.07 billion, an increase of 26% year-on-year. The digital industries division saw its revenues grow by 31% to 5.2 billion euros.

Turnover in the industrial automation business ("smart infrastructure") rose by 11% in the quarter. Ebita, on the other hand, fell by 14%. On the other hand, the Mobility business posted strong growth of 33% in Q4-2020/21.

For the full year 2020/21, the Siemens Group generated total revenues of €62.3 billion, up 11.5% year-on-year. It generated a net profit of €6.7 billion, up 59% on the previous year.

Group business review for the first quarter of 2021/2022

The Siemens Group's results showed strong growth in the first quarter (Q1) of the 2021/2022 financial year. They even exceeded all expectations. The company's business continues to benefit from better conditions, despite difficulties in the supply of electronic components.

In the period from October to December 2021, the German industrial conglomerate made a net profit of 1.8 billion euros, compared to 1.5 billion euros a year earlier. 1.5 billion a year earlier. This was 20% higher than in the same period last year. This result was also higher than the market forecast. The market expected 1.5 billion euros for the quarter.

In the first three months of the 2021/2022 financial year, Siemens' turnover amounted to 16.50 billion euros, compared to 14.07 billion euros. 14.07 billion, which means that it is up year-on-year. The market expected a turnover of 15.95 billion euros for this quarter.

Orders came to 24.21 billion euros, an increase of 42% on a comparable basis. In particular, they exceeded analysts' forecasts. The latter were expecting an amount of 18.03 billion euros.

Increase in operating profit in Q1 2021/2022

In the first quarter of 2021/2022, the Munich-based group, which has long been a producer of heavy industrial equipment and turbines, recorded an operating profit of EUR 2.5 billion, up 12%. This is a very good performance that exceeds market expectations.

The latter estimated a figure of 2.1 billion euros. In addition, all of the company's branches posted solid results for the quarter. Indeed, the 'digital industry' subsidiary, which includes the software business, saw its operating profit grow by 12% to 947 million euros.

The "smart infrastructure" division, dedicated in particular to industrial automation, recorded an increase of 23% to 480 million euros in Q2-2021/2022. The operating profit of the mobility division grew by 3% in the quarter under review.

Results for the second quarter of 2021/2022

The Siemens Group's business continued to grow in the second quarter of 2021/2022. This is illustrated by the increase in sales to €17 billion from €14.7 billion a year earlier. The market was expecting a turnover of 16.8 billion euros for this quarter.

For the three months to 31 March 2022, the German manufacturer generated an operating profit of 1.8 billion euros. This result was below market expectations. The latter was expecting a profit of around 2.4 billion euros.

The group explains that this less interesting performance is linked to provisions for depreciation and other charges estimated at 600 million euros. This is mainly due to the situation in Russia.

About Siemens' dividend and market capitalisation

The Siemens Group is one of the companies in the industrial sector that pays a coupon to its shareholders. As usual, it has not failed to sacrifice to tradition once again. On the strength of the good performance achieved over the entire financial year 2020/21, the company decided to increase the amount of the annual dividend.

The dividend was increased from 3.5 euros per share to 4 euros per share. The next dividend to be paid will be determined at the end of the 2021/2022 financial year, as is customary at the end of each financial year.

In addition, the Siemens share is one of the most popular shares on the German stock market. The company is listed on the Frankfurt Stock Exchange. Given the international nature of its activities, it is also listed in the United States on the NYSE. As of May 2022, its market capitalisation is estimated to be over 90 billion euros.