"We continued to grow in the third quarter and are on track to reach our targets for fiscal 2011. New orders again rose sharply, driven by a large order at Mobility. We're vigorously tackling operating challenges. Our markets are still robust, although risks are tending to increase in the global economic environment," said Siemens AG CEO Peter Loescher.
Orders in the third quarter climbed 25%, to approximately $32 billion on an adjusted base, and the order backlog reached a new high of approximately $134 billion. Revenue rose 8% on an adjusted basis, to approximately $25 billion, with increases in all regions.
In the U.S., on an adjusted basis, sales were up 15% and orders grew 6% over the last quarter.
"After three quarters of our fiscal year, orders were up 9% and sales by 10% and we are showing strong growth in our Energy, Industry and Healthcare sectors so far," said Eric Spiegel, president and CEO of Siemens Corporation. "Siemens is a good barometer for the U.S. economy because we are in so many industries. We are a trailing indicator on sales and a leading indicator on orders."
In the U.S. Industry sector, order growth in the first nine months of fiscal 2011 was broad-based but especially strong in the Mobility division. Siemens was awarded a $17.2 million contract from Metropolitan Atlanta Rapid Transit Authority (MARTA), on behalf of the City of Atlanta and the Atlanta Downtown Improvement District, to provide Atlanta with four new streetcars. The first car is expected to be delivered in September 2012 with revenue service beginning in early 2013. These will be the first streetcars in Atlanta since 1949 and will mark Siemens entry into the streetcar market in the United States. The streetcars will be built at Siemens' railcar and locomotive plant in Sacramento, Calif., with major components including the propulsion system built at Siemens' manufacturing facility in the metro-Atlanta suburb of Alpharetta.
The U.S. Energy sector had double-digit order growth in the first nine months of fiscal 2011. Recently, the company won a contract to install a turnkey back-to-back link to connect the power supply networks of New Jersey and New York. In the future it is estimated that an additional 660 megawatts of controlled electric power will be transmitted via a high-voltage cable link across the Hudson River from New Jersey to boost the power supply of New York. The total contract value for Siemens and its partner Prysmian is approximately $400 million.
Order growth in the U.S. Healthcare sector was broad-based in the first nine months of fiscal 2011. Siemens Healthcare received the US Food and Drug Administration (FDA) 510(k) clearance for the Biograph mMR, which represents the integration of diagnostic-grade magnetic resonance (MR) and positron emission tomography (PET) into a single-gantry whole-body scanner. The Biograph mMR features an incorporation of Siemens Healthcare's 3T MR technology and Avalanche photodiode solid-state PET detector technology. It enables simultaneous whole-body acquisition of data from magnetic resonance (MR) and positron emission tomography (PET).
The Biograph mMR allows a combined approach to imaging anatomical, functional and biochemical characteristics of disease. Potential clinical applications for molecular MR include the early identification and staging of malignancies, therapy planning and treatment. With the Biograph mMR, patients can be scanned in as few as 30 minutes for a combined whole-body exam, compared to one hour or more for sequential MR and PET exams. Additionally, Biograph mMR has a footprint comparable to a standard, high-field MR scanner and can be sited in a typical MR room, eliminating renovation costs for facilities seeking to replace an existing MRI.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For over 160 years, Siemens has stood for technological excellence, innovation, quality, reliability and internationality. The company is the world's largest provider of environmental technologies. More than one-third of its total revenue stems from green products and solutions. In fiscal 2010, which ended on September 30, 2010, revenue from continuing operations (excluding Osram and Siemens IT Solutions and Services) totaled euro 69 billion and net income from continuing operations euro 4.3 billion. At the end of September 2010, Siemens had around 336,000 employees worldwide on the basis of continuing operations. Further information is available on the Internet at: www.siemens.com.
Siemens Corporation is a U.S. subsidiary of Siemens AG (NYSE: SI), a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. Siemens in the USA reported revenue of $19.9 billion and employs approximately 62,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit www.usa.siemens.com.
SOURCE Siemens Corporation
Elizabeth Cho, Siemens Corporation