Siemens Stock Up On Q4 Profit Growth, Dividend Hike; Positive FY23 View

Shares of Siemens AG were gaining around 7 percent in the morning trading in Germany after the conglomerate reported Thursday significantly higher profit and revenues in its fourth quarter, and said it expects strong growth in earnings and sales in fiscal 2023. The company also raised its dividend.

Roland Busch, President and CEO, said, “Siemens delivered another outstanding performance in fiscal 2022, with a record high profit of more than €10 billion in our Industrial Business…. Strong demand continues for our hardware and software offerings, including higher than expected growth for our digital business revenue.”

Siemens proposed to increase the dividend to 4.25 euros per share from 4.00 euros a year earlier.

Looking ahead for fiscal 2023, Siemens expects profitable growth of industrial businesses to drive an increase in basic earnings per share pre PPA to a range of 8.70 euros to 9.20 euros in fiscal 2023. In fiscal 2022, earnings per share pre PPA was 5.47 euros.

Further, the company projects comparable revenue growth, net of currency translation and portfolio effects, in the range of 6 percent to 9 percent. In fiscal 2022, Siemens increased revenue on a comparable basis by 8.2 percent.

Despite challenges from COVID-19, supply chain constraints and geopolitical tensions itions, Siemens expects its industrial businesses to continue their profitable growth with the company’s high order backlog, particularly in short-cycle businesses.

In its fourth quarter, Siemens’ net income more than doubled to 2.91 billion euros from last year’s 1.33 billion euros.

Basic earnings per share rose to 3.39 euros from 1.45 euros a year ago. Earnings per share pre PPA climbed to 3.59 euros from 1.61 euros last year.

The results mainly reflected strong performance in the Industrial Business, as well as a gain on the sale of the mail and parcel-handling business of Siemens Logistics.

Revenue for the fourth quarter climbed 18 percent to 20.57 billion euros from 17.44 billion euros a year ago.

Revenue rose strongly in all industrial businesses, led by double-digit growth in Digital Industries and Smart Infrastructure.

Orders increased 14 percent to 21.82 billion euros from 19.07 billion euros last year with strong growth at Smart Infrastructure and Siemens Healthineers.

On a comparable basis, excluding currency translation and portfolio effects, revenue rose 12 percent and orders grew 7 percent.

In Germany, Siemens shares were trading at 129.44 euros, up 6.9 percent.

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