German tech giant Siemens records profit in FY 2020 despite COVID-19 crisis
Source: Xinhua | 2020-11-13
Although profits fell by 26 percent year-on-year, Siemens recorded a net income after tax of 4.2 billion euros (4.96 billion U.S. dollars) for the company's full fiscal year 2020 which ended on Sept. 30, the German technology giant announced on Thursday.
Revenues of Siemens remained almost stable and decreased by only two percent year-on-year to 57.1 billion euros for the full fiscal year, according to the company.
"The Siemens team delivered a strong finish to a remarkable year," said Joe Kaeser, president and chief executive officer (CEO) of Siemens in a statement.
Despite the major global challenges caused by the COVID-19 pandemic, the company had "successfully completed its fiscal year with a strong fourth quarter," Siemens noted.
Net income in the fourth quarter (Q4) increased by 28 percent year-on-year to 1.9 billion euros due to "higher income from discontinued operations, which included a pre-tax gain from the spin-off of Siemens Energy," according to Siemens.
Incoming orders in Q4 increased by two percent to 15.6 billion euros. Growing by 22 percent year-on-year, China was the "main driver" for the development of incoming orders. Compared with the previous quarter, Siemens achieved a nominal increase of seven percent in China.
"As expected, revenues declined slightly in most regions except China," said Kaeser during the presentation of the company figures. Siemens' total revenues in Q4 declined by three percent to 15.3 billion euros.
For the fiscal year 2021, Siemens is expecting net income to increase moderately "despite the strong currency headwinds." On a comparable basis, Siemens forecasted a "moderate growth in sales revenues." (1 euro = 1.18 U.S. dollars)
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