Industrial goods manufacturer
) reported fourth quarter fiscal 2013 net income of €1,068
million ($1,414.5 million) or €1.18 per share ($1.56), down from
€1,191 million ($1,577.4 million) or €1.29 per share ($1.71) in
the year-earlier quarter. In addition to a year-over-year
decline, the reported earnings also missed the Zacks Consensus
Estimate of $1.61.
For fiscal 2013, net income increased to $5,839.3 million (€4,409
million) or $6.66 per share (€5.03) from $5,671.1 million (€4,282
million) or $6.21 per share (€4.69) in fiscal 2012.
Revenues & Orders
Total revenue in the reported quarter decreased 1.3% year over
year to $28.1 billion (€21.2 billion), primarily due to drop in
revenues from the Energy and Industry segments. On a regional
basis, revenues decreased significantly in the Americas owing to
weak wind power markets in the U.S. The reported quarterly
revenues exceeded the Zacks Consensus Estimate of $27.1 billion.
For fiscal 2013, revenues declined 1.9% year over year to $100.5
billion (€75.9 billion).
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For fourth quarter fiscal 2013, orders dropped 1% year over year
to $27.8 billion (€21.0 billion) due to lower orders from Europe/
CAME (Europe, the Commonwealth of Independent States, Africa and
the Middle East). However, on an organic basis, excluding
currency translation and portfolio effects, orders and revenues
both rose 3% for the reported quarter.
For fiscal 2013, orders increased 8% year over year to $109.1
billion (€82.4 billion) due to a higher volume from large orders
compared with the prior year. The book-to-bill ratio for the
quarter was 0.99, while order backlog stood at $132.4 billion
(€100 billion) at quarter-end.
sector, Siemens recorded a 2.8% year-over-year decline in
revenues to $9.8 billion (€7.4 billion), dragged by significant
drop in revenues in the Americas, Asia and Australia, which was
partially offset by a growth in Europe/ CAME. The segment profit
for the reported quarter increased astronomically by 246% year
over year to $747.0 million (€564 million) due to stellar
performances by Fossil Power Generation, Wind Power and Oil &
The sector profit soared despite charges of $200.0 million (€151
million) under the "Siemens 2014" program, which is intended to
reduce the sector's cost structure, adjust capacity and optimize
regional footprint in accordance with demand. Moving forward,
from fiscal 2014, Siemens will combine the Fossil Power
Generation Division and the Oil & Gas Division into a single
unit under the name Power Generation.
sector profit decreased 4.8% to $796.0 million (€601 million) due
to lower revenues and higher charges from its ongoing Agenda 2013
initiative. Revenues dipped 1.6% year over year to $4.9 billion
(€3.7 billion) driven by lower revenues in Asia, Australia and
sector, revenues were down 5.3% year over year in the quarter to
$6.6 billion (€5.0 billion) due to lower top-line growth in all
geographic regions and continued softness in the sector's
short-cycle markets. Sector profit plunged 61.4% year over year
to $368.2 million (€278 million) due to $307.3 million (€232
million) charge associated with "Siemens 2014" program that aims
to reduce costs related with administrative processes and improve
the sector's global footprint.
Infrastructure & Cities
sector recorded a 4.4% year-over-year improvement in revenues due
to solid growth at Transportation & Logistics. On a
geographic basis, revenues were up in Asia, Australia and
Europe/CAME and were flat in the Americas. Sector profit
plummeted 60.1% year over year to $219.9 million (€166 million)
as the company recorded $337.7 million (€255 million) in charges
due to "Siemens 2014" program.
Balance Sheet and Cash Flow
In the reported quarter, free cash flow increased to $5,770.4
million (€4,357 million) from $5,732.0 million (€4,328 million)
in the year-ago period. Net cash from operating activities at
quarter-end stood at $6.8 billion (€5.1 billion).
Cash and cash equivalents at fiscal-end were $12.2 billion (€9.2
billion) compared with $14.4 billion (€10.9 billion) in the
prior-year period, while long-term debt increased to $24.5
billion (€18.5 billion).
In fiscal 2013, Siemens implemented a company-wide program titled
"Siemens 2014". The program was designed to support a uniform
single framework for sustainable value creation.
The company expects markets to remain challenging in fiscal 2014
with recovery in short-cycle businesses occurring in the later
half of the fiscal. Siemens expects orders to exceed revenues for
a book-to-bill ratio above 1. Earnings per share for fiscal 2014
are anticipated to increase by at least 15% from €5.08 in fiscal
Siemens presently has a Zacks Rank #2 (Buy). Other players in the
industry worth reckoning include
Koninklijke Philips N.V
Mistras Group, Inc.
), each carrying a Zacks Rank #2 (Buy).
Note: 1 € = $1.3244 (period average from Jul 1, 2013 to Sep
One Siemens ADR
corresponds to one Siemens share.