Siemens delivered a sound quarter to start its fiscal year 2014. Supported by several major orders, new orders rose 12 percent year-over-year, while revenue development was nearly stable. “We delivered a sound quarter to start our fiscal year. As expected, market conditions were not in our favor. We continue to focus on our productivity program for the year, and on the actions we will take beyond 2014,” said Siemens President and CEO Joe Kaeser.
At the Infrastructure & Cities Sector, new orders soared 45 percent, driven by a major order totaling €1.6 billion for two driverless subway lines in Saudi Arabia to be supplied by the Sector’s Transportation & Logistics and Power Grid Solutions & Products businesses. Revenue increased four percent year-over-year to €4.4 billion. Profit at the Infrastructure & Cities Sector climbed to €330 million from €141 million in the comparable period a year earlier, supported by profit increases in all the Sectors’ businesses. Improved project execution at the Transportation & Logistics business was a key factor. The profit margin rose to 7.6 percent, compared to 3.4 percent in the prior-year period.
At the Industry Sector, new orders rose ten percent to €4.6 billion, driven by a substantially higher volume from major orders in the Sector’s long-cycle businesses. At €4.3 billion, revenue remained at the prior-year level. Profit was down five percent to €482 million. Profit increased at the Industry Automation Division while declining at the Drive Technologies Division. The profit margin at the Sector was 11.2 percent, compared to 11.5 percent in the prior-year period.