Siemens AG (SIE.XE) reported results for the first quarter of its fiscal year before the market opened on Jan. 31. Here's what you need to know:
SALES FORECAST: Revenue for the October-December period rose around 3% to EUR19.82 billion, buoyed by double-digit gains at Siemens's mobility and digital factory units, and sharp growth at its wind energy subsidiary, Siemens Gamesa. Reported revenue narrowly missed a FactSet-compiled consensus of EUR19.92 billion.
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NET INCOME: Siemens posted net income of EUR2.21 billion for the quarter, up 12% on the year, despite a 14% drop in industrial profit and foreign-exchange headwinds. The result comfortably beat a consensus compiled by FactSet of EUR1.89 billion, largely thanks to the sale of Osram Licht AG (OSR.XE), which contributed EUR655 million, and a one-off boost from the U.S. tax reforms.
WHAT WE WATCHED:
LAYOFFS AND LABOR: Siemens didn't announce any new layoffs or provide much color on how talks with unions are progressing. However, CEO Joe Kaeser said on an earnings call that he hopes to have redundancy agreements in place by the end of the company's fiscal year, with savings coming into effect in 2019.
ORDERS: First-quarter orders rose 14% to EUR22.48 billion, outstripping a consensus provided by FactSet of EUR21.10 billion. Orders at Siemens's mobility unit jumped 49% to EUR2.18 billion, while digital factory orders were up 31% at EUR3.53 billion. Siemens Gamesa's orders more than doubled to EUR2.91 billion, thanks in part to a EUR1.7 billion order from Vattenfall.
TAX CUTS: Siemens booked a EUR437 million gain thanks to the revaluation of future tax positions stemming from the U.S. fiscal reforms. However, the company didn't raise its 2018 EPS guidance, as Banco de Sabadell analysts had predicted it would.
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(END) Dow Jones Newswires
January 31, 2018 07:32 ET (12:32 GMT)