Siemens posts record orders despite drop in annual profit

German industrial conglomerate Siemens disclosed a reduced annual net profit of €9.5 billion ($10.5 billion) for the year ended September, a €900 million decrease from the previous year's figure. The decline, however, did not impact the company's strong industrial earnings, which saw a 13% increase to a record €9.5 billion. Orders to Siemens reached an all-time high of €108 billion, surpassing revenue, which rose from €78.9 billion to €83.4 billion.

Chief executive Roland Busch attributed the success to strong performance in the Digital Industries and Smart Infrastructure divisions, particularly Digital Industries, which rebounded after years of weak demand. The CEO emphasized the exceptional growth potential in the Industrial AI sector, asserting that Siemens is well-positioned to capitalize on this opportunity.

Looking ahead, Siemens anticipates significant growth in both revenue and profit for the financial year starting in October. The company has also increased its medium-term growth targets, reflecting its strategic plans to divest its majority stake in medical technology subsidiary Siemens Healthineers. The company plans to distribute more than a third of Healthineers to Siemens shareholders next year, with each Siemens shareholder receiving one Healthineers share for every two Siemens shares they hold.

Siemens' chief financial officer, Veronika Bienert, confirmed these plans. The company's projections and financial figures exclude the Healthineers stake, as potential gains and costs associated with the separation are not accounted for in the current figures. Additionally, the company has pledged to raise its dividend by 15 cents to €5.50 per share.