Development in Siemens Energy’s relevant markets continued to be strong, despite an overall subdued economic momentum.
After several quarters of substantial growth, orders in the fourth quarter declined to €10.6bn and were down 7.8% on a comparable basis (excluding currency translation and portfolio effects) from the high prior-year figure, which was driven by large orders at Grid Technologies (GT). Book-to-bill ratio (ratio of orders to revenue) was well above 1, leading to a record order backlog of €112bn at year-end.
Revenue of €8.5bn declined by 2.5% on a comparable basis mostly due to Siemens Gamesa.
Siemens Energy’s Profit before special items was in the expected range with negative €487m (Q4 FY 2022: positive €564m) mainly driven by the loss at Siemens Gamesa. Special items decreased to negative €64m (Q4 FY 2022: negative €105m). Profit for Siemens Energy came in at negative €551m (Q4 FY 2022: positive €459m).
Accordingly, Siemens Energy showed a Net loss of €870m (Q4 FY 2022: Net income €354m). Corresponding basic earnings per share (EPS) were negative at €1.04 (Q4 FY 2022: positive €0.33).
Free cash flow pre tax amounted to €1,108m. This was below strong prior-year quarter’s level of €1,949m, primarily due to Siemens Gamesa, which benefited in the prior-year quarter from the sale of its wind farm development portfolio in Southern Europe.
Christian Bruch, President and Chief Executive Officer of Siemens Energy AG:
“In a year of unprecedented challenges for Siemens Energy, two-thirds of our businesses are on a profitable growth trajectory, meeting or exceeding their full-year targets. For our underperforming wind business all eyes must be on cost-out, selectivity and acceleration of productivity while continuously working on the remediation. The current high demand for our products also brings challenges. We are therefore very glad that after very constructive discussions, we have now found a good solution with all parties to secure our energy transition-accelerated growth”
In fiscal year 2024, we expect for Siemens Energy a comparable revenue growth (excluding currency translation and portfolio effects) in a range of 3 % to 7 % (actual figure FY 2023: 9.9 %) and a Profit margin before special items between negative 2 % and positive 1 % (actual figure FY 2023: negative 8.9 %). Furthermore, we expect a Net income of up to €1bn (actual figure FY 2023: Net loss of €4,588m) including impacts from disposals and the acceleration of the portfolio transformation. We assume a negative Free cash flow pre tax of around €1.0bn (actual figure FY 2023: positive €784m). In addition, we expect proceeds in a range of positive €2.5bn to €3.0bn from disposals and the acceleration of the portfolio transformation
The outlook for Siemens Energy does not include charges related to legal and regulatory matters.
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