Siemens’ profit jumps to £1.58 billion in the fiscal fourth quarter

Written by: Wajeeh Khan
November 12, 2020
  • Siemens’ profit jumps to £1.58 billion in the fiscal fourth quarter.
  • The German multinational reports a 6% decline in revenue.
  • Siemens declares £3.15 per share of dividend for fiscal 2020.

Siemens AG (ETR: SIE) said on Thursday that its profit in the fiscal fourth quarter increased on an annualised basis and topped analysts’ estimates. The company also offered guidance for the ongoing financial year.

Shares of the company closed almost flat on Thursday. At £102.23 per share, Siemens AG is currently close to 6% up year to date in the stock market after recovering from a low of £50 per share in March, when the impact of COVID-19 was at its peak. Confused about choosing a reliable stockbroker to trade online? Here’s a list of the top few to make selection easier for you.

Siemens reports a 6% decline in revenue

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Siemens said that its net profit stood at £1.58 billion in the quarter that concluded on 30th September. In comparison, it had reported a lower £1.19 billion of profit in the same quarter last year. Earlier this month, Siemens Healthineers said that its comparable sales were 2% down in the fiscal fourth quarter.

The company attributed its hawkish performance to discontinued operations that resulted in increased income in recent months. The company provided consensus for its profit in Q4 stood at £1.55 billion. In separate news from Germany, automotive parts manufacturer Continental AG said that its sales were likely to remain under pressure in fiscal 2020.  

The German multinational also highlighted in its report on Thursday that its industrial profit margin jumped to 18.7% in the recent quarter versus the year-ago figure of 16%. In terms of revenue in Q4, Siemens registered a 6% year over year decline to £13.76 billion.

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Other prominent figures in Siemens’ earnings report

Other prominent figures in Siemens’ financial update on Thursday include £13.99 billion worth of orders that represents a 1% decline. The Munich-based company declared £3.15 per share of dividend on Thursday for fiscal 2020, as compared to a higher £3.51 per share last year.

For the full fiscal 2021, Siemens now forecasts its net income and comparable revenue to see moderate growth. Siemens upgraded meter data management app with Amazon Web Services earlier this week.

Siemens AG performed fairly upbeat in the stock market last year with an annual gain of more than 20%. At the time of writing, the German multinational conglomerate has a market cap of £86.97 billion and a price to earnings ratio of 25.79.