Siemens Stronger Than Ever Siemens Reports Record Profit and Separation from Healthineers

Source: dpa 3 min Reading Time

Related Vendor

The Siemens Group has been rushing from profit record to profit record for a long time. Now it has done it again! In the course of the developments, however, there will also be changes...

The Munich-based Siemens Group is reportedly becoming more successful every year. Why it is going from one record to another despite the bad times is explained here. At the same time, the company wants to ensure even faster growth and divest its subsidiary Healthineers ...(Image: Siemens)
The Munich-based Siemens Group is reportedly becoming more successful every year. Why it is going from one record to another despite the bad times is explained here. At the same time, the company wants to ensure even faster growth and divest its subsidiary Healthineers ...
(Image: Siemens)

Despite all the crises in the world, Siemens is reportedly posting one record profit after another. On balance, the Group earned 10.4 billion euros (~$12.1 Billion) in the past fiscal year. That is a whopping 16 percent more than a year ago. In view of the figures, Siemens CEO Roland Busch spoke of a milestone: "For the third time in a row, we have achieved a record profit after tax. We achieved growth in the mid-single-digit percentage range for both order intake and sales. This makes Siemens stronger than ever!"

These Are the Growth Drivers for Siemens' Success

On the one hand, the Munich-based high-tech group owes the jump in profits to a one-off effect worth billions from the sale of Innomotics, which had already taken effect in the first quarter. On the other hand, the booming business in the Smart Infrastructure division had a positive effect, according to the statement. In addition, the Digital Industries division's business with automation technology, which has been floundering recently, is picking up speed again and grew slightly in the fourth quarter of the fiscal year. But Siemens also has restructuring plans! Together with its annual figures, Siemens also presented the One Tech Company project. This is intended to enable the Group to grow even faster. One of the goals is to double turnover in the digital business by 2030. Siemens also wants to expand its position in growth regions. This will be driven by increased investment in the USA, China and India. And over the next three years, one billion euros is to be invested in Siemens' AI offerings. The subsidiary Siemens Healthineers also contributed to the profit. However, the Group intends to sell its majority stake in this company ...

Siemens Considers Separation from Healthineers Division

As a first step on the road to separation, 30 percent of the company is to be passed on to Siemens shareholders, preferably in the form of a spin-off, according to reports. However, this step comes as no surprise. This deconsolidation offers the potential to create long-term value for Siemens shareholders as a more focused technology company. Shareholders had been calling for a separation for some time because Healthineers had no synergies with the other businesses and also tied up a lot of capital. Siemens had recently sold shares again and again and currently still holds around 67 percent. In the medium term, Siemens is aiming for a purely financial investment. Siemens also reaffirmed its progressive dividend policy, which is to be continued even after the deconsolidation of Siemens Healthineers.

Subscribe to the newsletter now

Don't Miss out on Our Best Content

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy. The consent declaration relates, among other things, to the sending of editorial newsletters by email and to data matching for marketing purposes with selected advertising partners (e.g., LinkedIn, Google, Meta)

Unfold for details of your consent