Siemens in Germany sees profits increase by 20% and increases its dividend | Economic news

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By DAVID McHUGH, AP Business Writer

FRANKFURT, Germany (AP) — Germany’s Siemens AG, a global maker of expensive machinery, equipment and industrial software, saw its net profit rise 20% to 1.8 billion euros in the last three months of 2021, as the recovering global economy increased orders for its goods, including a billion-euro order for high-speed trains in Germany.

The company on Thursday confirmed its outlook for increased profits in the future and proposed a dividend increase of 4 euros per share for its last financial year, compared to 3.50 euros for the 2020 financial year.

CEO Roland Busch said the company had “a very successful start” in the October-December quarter, the first of its fiscal year. Siemens experienced what Busch called an “unprecedented boom” in new orders, which were up 52% ​​from a year earlier.

This is a key figure for the company as large-scale project orders that can take months or years to complete underpin future revenues and reflect economic optimism and willingness to invest in the main markets of China, Europe and the United States.

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Siemens’ outlook “is based on continued healthy global GDP growth, albeit with slowing momentum.” Its projects have faced hurdles from new COVID-19 outbreaks and supply chain delays like the rest of the global economy, but Siemens said it expects those challenges. to calm down this year.

The company reported strong results and orders from its factory automation and industrial software business, which generated a profit of just under €1 billion, with a hefty profit margin of 22%.

Siemens pursued a strategy as a “focused technology company”, splitting off its less profitable gas and power division and selling a stake in its medical equipment business, whose products include MRI imaging machines. It is preparing to sell its stake in a joint venture Valeo Siemens eAutomotive, which makes parts for battery-powered and hybrid cars, and its mail and parcel business Siemens Logistics.

Headquartered in Munich, Siemens has 305,000 employees in more than 200 countries who manufacture trains, medical imaging devices and industrial automation systems.

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