Germany’s Siemens proposed increasing its dividend after a sharp rise in final-quarter orders and profit. Annual free cash flow reached 12.1 billion euros. The industrial group also plans to distribute part of its Healthineers holding to shareholders; its next-year earnings forecast excludes that business and uses a different comparison base.
German industrial group Siemens ended its financial year with stronger fourth-quarter orders and earnings and proposed an increase in its dividend.[1], [2]
Orders in the quarter reached 34.8 billion euros, a rise of 58 per cent, against revenue of 23.7 billion euros. Revenue grew 11 per cent. Industrial Business profit increased 22 per cent to 3.9 billion euros, while quarterly net income climbed 32 per cent to 2.4 billion euros.[1]
Across the full year, Siemens booked 108.2 billion euros of orders and 83.4 billion euros of revenue. Free cash flow totalled 12.1 billion euros, including 5.6 billion euros generated in the final quarter. Annual net income was 9.5 billion euros. The preceding year’s 10.4 billion euro result included a 2.1 billion euro gain on selling Innomotics, its motors business.[1]
The proposed dividend is 5.50 euros per share, up from 5.35 euros. Siemens also plans to distribute a 34.1 per cent stake in its medical-technology business Healthineers to shareholders, giving one Healthineers share for every two Siemens shares. Its new-year earnings-per-share forecast of 10.20–10.80 euros excludes Healthineers operations. The corresponding preceding-year base is 9.27 euros; management targets comparable revenue growth of 9–11 per cent.[1]
