Siemens Q4 profit declines, revenues up; Sees higher EPS in FY16

The program will have a capacity of up to $3 billion Dollars and will continue in the next 36 months, the company said.

The company exceeded its industrial profit margin target of 10-11 % with a result of 11.3% in its fourth quarter to the end of September, and renewed the goal for the current year. Analysts had expected that the net profit will be 1.2 billion Euro, according to a recent study of the Wall Street Journal.

“We delivered what we promised and are well prepared to deliver on our plans for the year ahead”, said Siemens Chief Executive Joe Kaeser. As an additional gesture to shareholders the company proposed a dividend of €3.50 for fiscal 2015, which is 6% more than the previous year. The company meanwhile forecast that earnings per share will rise at least 14 percent next year from the underlying 5.18 euros per share in 2015, which excludes gains from the sale of the hearing aids unit and home appliances stake.

The contraction in net profit reflected the depreciation of 138 million Euro in connection with the share of Siemens’ Primetals Technologies and falling margins energy and its industrial division. While it is under pressure infect the economic slowdown in China, explained by Siemens.

The head of German industrial group Siemens was recently accused of sounding more like the head of a start-up than a man in charge of a behemoth founded more than 150 years ago.

Profitability at the group’s power and gas business was primarily held back by severance charges and lower margins in the gas-turbine business, though the acquisitions of Rolls-Royce’s energy business and US oil equipment manufacturer Dresser-Rand boosted revenue and orders.

Global oil prices have more than halved since Siemens agreed to buy Dresser-Rand, causing customers to slash around $200 billion worth of projects. The new acquisitions are also likely to play a part in boosting the company’s future profits.

“Post today’s guidance, we believe there could be room for consensus upgrades over the course of the next 12 months if macro would be stable”, DZ Bank analyst Alexander Hauenstein said in a research note.