Latest news with #RalfThomas
Yahoo
07-08-2025
- Business
- Yahoo
Siemens Beats Market Views With Order Momentum in Mobility
Siemens posted better-than-expected revenue and order intake for its third quarter, driven primarily by its mobility business. The German technology giant on Thursday said that it saw revenue growth in most industrial businesses in the quarter ended June 30 led by a significant increase in mobility demand. Orders at the business more than tripled due to a sharply higher volume from larger orders, including one worth 3.5 billion euros ($4.08 billion) from an existing framework agreement for a turnkey rail system in Egypt. Trump Pledged to Bring Back Manufacturing. The Sector Is Sputtering. Disney Paying $1.6 Billion for WWE Rights United Airlines Resumes Flights After Tech Problem Prompts Halts Microsoft Raids Google's DeepMind AI Unit With Promise of Less Bureaucracy U.S. Trading Partners Race to Secure Exemptions From Trump's Tariffs The business recorded strong top-line growth and saw orders jump to 7.94 billion euros from 2.40 billion euros from the prior year's period, while revenue increased 19% on a comparable basis to 3.07 billion euros. Mobility's sales continues to look promising for the fourth quarter and thereafter, Chief Financial Officer Ralf Thomas said in a press call. However, at digital industries, orders and revenue dropped 4% and 10%, respectively, on a comparable basis. All of the business's top-and bottom-line key performance indicators reflect a challenging basis of comparison, the company said. In addition, orders haven't yet seen the expected demand increase in the second half of the fiscal year, it added. The performance is disappointing, Deutsche Bank Research analysts Gael de-Bray and Nabil Najeeb said in a note to clients. Citi analysts see the progression of the business as the main focus moving forward. Earlier this year, Siemens said it would cut more than 6,000 jobs in automation and electric-vehicle charging businesses by the end of fiscal 2025. This is going according to plan and an agreement has been signed with employee representatives in Germany, the company said. Siemens shares trade 1% higher at 221.4 euros. Meanwhile, revenue in the smart-infrastructure business rose 9% on a comparable basis to 5.71 billion euros. This was led by the electrification business which continued to execute strongly on its large order backlog from data center and energy customers, Siemens said. The German conglomerate followed European peers Schneider Electric, ABB and Legrand in continuing to capitalize on the booming demand from artificial intelligence and data-center infrastructure. ABB posted increased margins in its electrification unit, while Schneider Electric saw double-digit organic growth in its energy management business. In the U.S., Eaton noted a twelve-month rolling average orders acceleration in Electrical Americas, driven by data center momentum. For the quarter ended June, Siemens posted net profit of 2.05 billion euros, up from 1.98 billion euros the prior year. Revenue rose 5% on a comparable basis to 19.38 billion euros. The figures beat analysts expectations of net profit at 1.80 billion euros on revenue of 19.24 billion euros, according to consensus estimates compiled by the company. Orders rose 28% on a comparable basis at 24.72 billion euros, above analysts' estimated 21.46 billion euros, according to the same consensus. For fiscal 2025, the company backed its outlook, targeting group comparable revenue growth between 3% and 7%. Smart infrastructure's profit margin is estimated to range between 17% and 18%, and digital industries' s profit margin between 15% and 19%. Effects related to the Altair and Dotmatics acquisitions aren't included in the outlook, Siemens said. Citi analysts see limited underlying changes to forecasts following these results and said bigger catalysts for the shares are yet to come with the capital markets day in December, they said. Write to Nina Kienle at Trump Exempts Tech Companies That Invest in U.S. From 100% Chip Tariffs As AI Changes Internet Search, Reddit Lies in a Sweet Spot McDonald's Sales Rebound After Burger Giant Hammers Value Message Apple Stock Rally Pushes Nasdaq Near a Record Government Data Is Under Fire, but It Makes the World Go 'Round Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
07-08-2025
- Business
- Free Malaysia Today
Siemens warns US tariffs are causing investment caution
Siemens' shares jumped over 4% in Frankfurt after the results were released. (EPA Images pic) FRANKFURT : Siemens warned today that US tariffs were prompting its customers in key sectors to slow investment decisions, even as the German industrial giant reported forecast-beating quarterly profits. The group booked net profits of €2.2 billion (US$2.6 billion) from April to June, up 5% from a year earlier, as strong orders at its division that makes trains offset problems at its factory automation unit. Sales grew by 5% to €19.4 billion, and Siemens's shares jumped over 4% in Frankfurt after the results were released. However, CFO Ralf Thomas cautioned that Siemens's sprawling global business was not immune from heightened global volatility unleashed by US President Donald Trump's tariff blitz. 'Ongoing tariff uncertainties and trade tensions have dampened further recovery because of a rather cautious investment sentiment in important customer industries,' he said. He pointed to industries such as the automotive and production of industrial machinery ones. CEO Roland Busch added that, in several key industries, 'sales cycles have been extended and investment decisions are taking longer'. Busch said the US levies were impacting the group's unit that deals with factory automation, which had already been facing problems. 'Orders in the digital industry business recovered less strongly than anticipated due to the continuing high level of uncertainty regarding the future tariff environment and ongoing trade disputes,' he said. The unit, which supplies robotics, other machinery and industrial software to factories, saw revenues fall by 10% in the quarter, with sales of software hit particularly hard. The division will bear the brunt of 6,000 job cuts, about 2% of Siemens's global workforce, that were announced in March. It has been affected by muted demand, particularly in China and Germany. Siemens had long been a producer of heavy industrial equipment but has in recent years sought to shift its focus towards digital technology and factory automation.
Business Recorder
15-05-2025
- Business
- Business Recorder
Siemens confirms growth outlook after Q2 figures beat forecasts
ZURICH: Siemens still expects to increase its full-year sales by between 3 and 7% 'despite increased uncertainty', the German engineering group said on Thursday, as it reported better-than-expected profit during its second quarter. The company, whose products include factory software, controllers and trains, said its industrial profit rose 29% to 3.24 billion euros ($3.63 billion) in the three months to the end of March. The figure, helped by a 315-million-euro gain from the sale of its wiring business to ABB, beat analysts' consensus forecast of 2.75 billion euros. Sales rose 7% to 19.76 billion euros, ahead of forecasts for 19.22 billion euros, while orders increased 10%. As a result, Siemens confirmed its outlook for its full-year sales to increase by 3-7% despite seeing 'increased uncertainty in the economic environment'. 'Our customers continue to rely on our technology, and our global footprint demonstrates our resilience,' said Chief Executive Roland Busch in a statement. In March, Chief Financial Officer Ralf Thomas noted hesitancy among customers due to uncertainties about tariffs, with many delaying investment decisions. But Siemens, whose results give an indication of the broader industrial economy, said it was seeing an improving situation in most of its businesses. Although Digital Industries, the company's flagship automation unit, struggled, with a 5% drop in revenue, Siemens said it saw signs of destocking by customers coming to an end. The weakness was compensated by Smart Infrastructure, which combines hardware and software to manage electricity, heating, cooling, lighting, and data in buildings. It increased sales by 12% while profit jumped 61% helped by the sale of its wire accessories business. The division is benefiting from sustained demand for electrification, power distribution and the construction of data centres for artificial intelligence. Mobility also saw revenue and profit rise, buoyed by global investments in rail and transport infrastructure such as electric trains in the United States.
Zawya
20-02-2025
- Business
- Zawya
Siemens raises around $1.5bln from selling Siemens Healthineers stake
German engineering company Siemens has raised roughly 1.45 billion euros ($1.5 billion) after selling a stake in healthcare subsidiary Siemens Healthineers, with proceeds expected to help pay for its acquisition of U.S. software firm Altair Engineering. The company sold a 2% stake, or 26.5 million ordinary shares, via a private placement, it said late on Wednesday, reducing its stake in the medical equipment maker to 73% from 75%. CEO Roland Busch has said that Siemens would likely reduce its stake in Healthineers by around 5% this year, and also offload 6% of its holding in Siemens Energy. Strong investor appetite allowed Siemens to increase the transaction size from 22 million shares initially. The company said proceeds will be used for "general corporate purposes." A Siemens spokesperson said the company had previously communicated that proceeds would help to finance the acquisition of Altair Engineering. Last year's $10.6 billion acquisition of Altair was the second biggest in the company's history. "This intention has not changed," the spokesperson said. Siemens has agreed to a lockup period where it will not sell more of its remaining 823.5 million shares for 90 calendar days. Shares in Siemens Healthineers fell in early trading. Morgan Stanley, Barclays, and BNP Paribas acted as global coordinators and book runners for the sale, which will be completed on February 24. Siemens also recently reduced its holding in Siemens Energy from 15% to 14.3%, and has said it will gradually reduce this further during 2025. The company intends to provide a strategic update on Siemens Healthineers to investors in December this year, CFO Ralf Thomas told analysts last week. ($1 = 0.9610 euros)
Reuters
06-02-2025
- Business
- Reuters
Siemens Healthineers says it would welcome stake reduction by Siemens
Feb 6 (Reuters) - Siemens Healthineers' ( opens new tab CEO said on Thursday that the medical-technology company had a "very positive" view on considerations by parent Siemens ( opens new tab to reduce its stake. A higher free float would be "very good for the company in the long term as well as for the share price," Healthineers CEO Bernd Montag said in a call after the release of first quarter results. In December, Siemens's Chief Financial Officer Ralf Thomas said that the parent company, which currently holds a 75% stake, is reviewing its majority stake, with an update to be given at a capital markets day at the end of 2025. Healthineers said in an analyst call that while most of its debt financing was provided by Siemens, there would be a grace period during which refinancing would take place in case of a large stake reduction. "We have already refinanced a certain aspect of it over the last years at higher interest rates than they were beforehand," Chief Financial Officer Jochen Schmitz said, "I feel very well prepared to go through that process if it comes and we will be well prepared for this". Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
