Despite the impact of Covid-19, revenue fell by only 2% year-on-year from €2.5bn to €2.45bn. The company recorded growth of 14% in orders in 2020, rising to €2.08bn from €1.83bn in 2019.
Siemens says that the company experienced gains in rolling stock and signalling orders, which counteracted lower proceeds from higher-margin rail infrastructure and service businesses.
This includes a firm order from DB Cargo for 100 dual-power Vectron locomotives signed in September as part of a €1bn framework agreement for up to 400 units, and a €135m contract to equip CBTC on the Jurong Region Line (JRL) in Singapore.
As part of the Siemens Group’s Vision 2020+ long-term strategy, which aims to provide the company’s individual subsidiaries with more entrepreneurial autonomy, Siemens Mobility’s Intelligent Traffic Systems division (Siemens ITS) will be spun off at the end of the 2021 fiscal year. Siemens says the move will enable the unit to pursue more rapid expansion and actively drive market consolidation in the field of digitalisation.
Siemens has also sold coupling manufacturer Flender to investor Carlyle, with this deal expected to be completed in the first quarter of fiscal 2021.
Siemens Mobility remains optimistic about its outlook for the 2021 fiscal year, and forecasts that the Covid 19 pandemic will not have a long-lasting impact on the global economy. Siemens says it expects conditions to improve, particularly for its high-margin short-cycle businesses, in the second half of fiscal 2021.
Siemens Mobility is expected to experience mid-single-digit comparable revenue growth over the coming fiscal year, primarily by executing its large order backlog. Mobility is also predicted to experience an adjusted Ebitda margin of between 9.5% and 10.5%.
“Even in these challenging times, Siemens has a very solid financial setup,” says Mr Ralf Thomas, Siemens’ chief financial officer.