Siemens orders for the second quarter climbed 32% year-over-year, reaching €21.0 billion on double-digit increases in all industrial businesses, while revenue rose 16% year-over-year, to €17.0 billion, for a book-to-bill ratio of 1.23.
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• Orders rose 22% and revenue grew 7% on a comparable basis, excluding currency translation and portfolio effects, primarily the acquisition of Varian Medical Systems, Inc. (Varian) between the periods under review
• Profit Industrial Business came in lower at €1.8 billion with a profit margin of 11.0%, both heavily burdened by €0.6 billion in impacts, mainly in Mobility, subsequent to sanctions imposed on Russia
• Net income was €1.2 billion, with corresponding basic earnings per share (EPS) of €1.29 and EPS before purchase price allocation accounting (EPS pre PPA) of €1.50; while net income in the current period included Russia-related impacts totaling €0.6 billion, the prior-year quarter benefited from a €0.9 billion divestment gain within discontinued operations
• Free cash flow from continuing and discontinued operations rose to €1.3 billion (Q2 FY 2021: €1.2 billion).
Siemens will exit the Russian market as a result of the Ukraine war.
"The company has started proceedings to wind down its industrial operations and all industrial business activities. The financial impact of this decision will be reported as part of the regular disclosure on the second quarter results today on May 12, 2022," the company said.
After the start of the war, Siemens put all new business in and international deliveries to Russia and Belarus on hold. The comprehensive international sanctions, as well as current and potential countermeasures, impact the company’s business activities in Russia, particularly rail service and maintenance.
Roland Busch, President and CEO of Siemens AG, said: “We condemn the war in Ukraine and have decided to carry out an orderly process to wind down our industrial business activities in Russia. This was not an easy decision, given our duty of care for our employees and long-standing customer relationships, in a market where we have been active for almost 170 years.
"We are evaluating the impact on our people and we will continue to support them to the best of our abilities. At the same time, we provide humanitarian assistance to our colleagues and the people of Ukraine and stand with the international community in calling for peace.â€
The business will manage the orderly process to wind down its activities in line with regulatory requirements and international sanctions. Siemens Healthineers has already informed on its activities related to Russia as part of its Q2 disclosure on May 4. ■