Siemens’ profits jumped to £1.58 billion in the fourth quarter of the fiscal year.
The German multinational reports a 6% decline in sales.
Siemens announces a dividend of £3.15 per share for fiscal 2020.
Siemens AG (ETR: SIE) said on Thursday that its fourth quarter fiscal earnings had increased on an annual basis and exceeded analysts’ estimates. The company also issued a forecast for the current fiscal year.
The company’s shares closed almost unchanged on Thursday. At £102.23 per share, Siemens AG is currently almost 6% higher than the previous year’s high on the stock market, after recovering from a low of £50 per share in March, when the impact of COVID-19 was at its peak. Confused about choosing a reliable stockbroker for online trading? Here is a list of the few providers to help you make your choice.
Siemens reports a 6% drop in sales.
Siemens reported that its net profit for the quarter ended September 30 was £1.58 billion. This compares with a lower profit of £1.19 billion in the same quarter last year. Earlier this month, Siemens Healthineers announced that comparable revenue for the fourth quarter of the fiscal year was down 2%.
The company attributed its combative performance to discontinued operations, which had led to higher revenues in recent months. The company reported a consensus that its fourth quarter profit was £1.55 billion. In a separate news release from Germany, automotive supplier Continental AG said that its sales in fiscal 2020 were likely to remain under pressure.
The German multinational also highlighted in its report on Thursday that its industrial profit margin in the last quarter jumped to 18.7% from 16% in the previous year. In terms of fourth quarter revenue, Siemens reported a 6% year-on-year decline to £13.76 billion.
Other prominent figures in Siemens’ earnings report
Other prominent figures in Siemens’ financial update on Thursday include orders worth £13.99 billion, down 1%. The Munich-based company announced on Thursday a dividend of £3.15 per share for fiscal 2020, compared to a higher £3.51 per share last year.
For the full fiscal year 2021, Siemens now forecasts moderate growth in net income and comparable revenue. Earlier this week, Siemens updated its meter data management app with Amazon Web Services.
Siemens AG performed quite well on the stock market last year with an annual profit of more than 20%. At the time of writing this article, the German multinational conglomerate has a market capitalization of 86.97 billion pounds and a price-earnings ratio of 25.79.