Siemens Energy announces results for Q1 FY2024
Siemens Energy could boast successful results for Q1 of FY2024.
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Germany, Berlin: Siemens Energy’s business development in Q1 of FY2024 was supported by favourable market trends. Grid Technologies and Transformation of Industry were particularly strong, leading to the highest orders in a quarter to date.
The company said orders increased year-over-year by 23.9% on a comparable basis (excluding currency translation and portfolio effects) to €15.4 billion, while the book-to-bill ratio (ratio of orders to revenue) was above 2, driving the order backlog to €118 billion. Revenue was €7.6 billion, a 12.6% increase. Grid Technologies boasted a particularly strong increase.
Profit before special items was positive €208 million. Prior year quarter’s result were, negative €282 million, burdened by quality related charges at Siemens Gamesa. Special items amounted to positive €1,670 million, driven by a pre-tax gain related to the sale of an 18% stake in Siemens Limited, India, of €1,729 million. Profit came in at positive €1,878 million. Due to the special items, the Net income was €1,582 million, while basic earnings per share (EPS) were positive €1.79.
Free cash flow pre-tax was negative with €283 million, as Siemens Gamesa suffered a high cash outflow due to a loss and a build-up of operating net working capital in a weak quarter. Related to the sale of the stake in Siemens Limited, India, Siemens Energy recorded a nearly €2.1 billion cash inflow, not reflected in Free cash flow pre-tax, but contributing to Adjusted Net cash.
Christian Bruch, President and CEO of Siemens Energy commented: “The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing.”
The company confirms its outlook for FY2024, expecting a comparable revenue growth of 3-7%, a Profit margin before special items between negative 2% and positive 1%, and Net income of up to €1 billion. It assumes a negative Free cash flow pre-tax of around €1 billion and expects proceeds of positive €2.5 billion to €3.0 billion from disposals and the acceleration of the portfolio transformation. The outlook doesn’t include charges related to legal and regulatory matters.
Source: Siemens Energy