SIEMENS Mobility achieved a 23% increase in orders to €3.15bn in the fourth quarter of the 2023 financial year, which ended on September 30, and a 7% growth in fourth quarter revenue to €2.88bn. Nevertheless, profit fell by 2% to €323m and the division’s profit margin dropped from 8.8% to 8% in the fourth quarter of fiscal 2023.
Siemens attributes the strong increase in orders to higher volume large orders, among them two contract wins for commuter trains in Germany worth €400m and €300m, respectively, and a substantial increase in rail infrastructure orders. Siemens Mobility had a book-to-bill ratio of 1:1 and an order backlog of €45bn at the end of fiscal 2023, while free cash flow exceeded €1bn.
“Revenue increased to its highest quarterly level ever including comparable growth in all businesses; the strongest growth contribution came from the rolling stock business,” Siemens says. “Profit came in close to the prior year level, while profitability declined due to a less favourable business mix.”
Overall, Siemens reports a 7% increase in orders to €92.3bn in 2023, an 11% increase in revenue on a comparable basis to €11.4bn, an almost doubling of net income to €8.5bn, and a record level of free cash flow at €10bn. “Our continuously stellar free cash flow confirms, above all, our outstanding operational performance - also compared with our competitors,” says Dr Roland Busch, president and CEO of Siemens.
“Our shareholders will benefit from this success, with a proposed dividend increase to €4.70, a corresponding dividend yield of 3.5% and our expanded share-buyback programme,” says Dr Ralf Thomas, CFO of Siemens.
Siemens expects its Mobility division to have comparable revenue growth of 8-11% in the 2024 financial year, compared with growth of 4-8% for the company as a whole, while Siemens Mobility’s profit margin is expected to be between 8% and 10%.
“Mobility’s sales funnel for fiscal 2024 continues to look very promising for achieving a book-to-bill ratio well above 1 across all business activities again in fiscal 2024,” Thomas says. “However, the expected timing for the awarding of larger projects indicates that the order level will be materially below fiscal 2023.
“With regard to our projects in Egypt, we are progressing in project execution for the so-called Green Line. The first Desiro train recently arrived in Egypt. For the Red and Blue Lines, the contracts have been successfully concluded. The end of calendar year 2023 was agreed on as the contractual commencement date for both lines. From today’s perspective, the financial closing is expected to take place at the end of calendar year 2024 at the earliest. After this closing, the remaining order volume of around €5bn will be booked as order intake.”
• Siemens Mobility has completed the acquisition of HMH, Slovakia. HMH supplies its Mirel VZ1 train protection system to Slovakia, Czech Republic, Hungary, and Poland. Mirel VZ1 is capable of being integrated with ETCS. HMH will now be integrated into Siemens Mobility’s Rail Infrastructure business unit.
“HMH is a strategic addition to our Rail Infrastructure portfolio and enhances our market position,” says Mr Andre Rodenbeck, CEO of Siemens Mobility Rail Infrastructure. “This acquisition represents an important milestone in our pursuit of providing comprehensive solutions from a single source for all rolling stock providers in Europe.”
