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ots Ad hoc-Service: SIEMENS AG <DE0007236101> EBIT margin trend: increase in the range of 20% a year

Munich (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
Siemens AG today released its Annual Report for fiscal 2000 (ended
September 30). This is the last Siemens annual report to be based on
the German GAAP (HGB). The report confirmed the preliminary figures
published on November 8, 2000. The company's economic value added
(EVA) rose more than EUR 1.5 billion to EUR 859 million, going
positive one year earlier than expected. Earnings per share climbed
93% to EUR 5.07.
Selected proposals at the Annual Shareholders' Meeting A stock
split will be proposed at the Annual Shareholders' Meeting 2001.
Shareholders will receive one additional share for every two they
own. The shares will be traded at roughly two-thirds of their former
price. To cover the new share emission, retained earnings will be
converted into capital stock without changing the absolute amount of
shareholders' equity. The stock split will not affect the overall
goal of reducing shareholders' equity and thus raising investors'
returns. Last year's buy-back is only a first step. If shareholders
at the Annual Shareholders' Meeting approve, the company plans to
repurchase and retire additional shares. The relevant item on the
Meeting agenda will include a new, innovative alternative which will
make it possible to offer Siemens shareholders the opportunity to
exchange their shares for Infineon stock owned by Siemens.
Fiscal 2000 - key figures based on U.S. GAAP For the first time,
Siemens is presenting selected key figures for the past fiscal year
based on U.S. GAAP. Under U.S. GAAP, the total net income (excluding
minority interest) was EUR 8.9 billion, or EUR 1.3 billion higher
than when calculated according to the HGB. EBIT from Operations was
EUR 655 million lower than with HGB. This largely reflects the
application of the percentage-of- completion method of accounting
used for long-term contracts. Excluding extraordinary items and
conversion-related special effects, the adjusted U.S. GAAP result
totals EUR 2.639 billion after taxes. This amount is comparable to
the HGB result (excluding minority interest) of EUR 3.029 billion.
Medium-term goals Siemens aims to achieve further substantial
increases in profitability. In the coming years, the company aims at
an EBIT margin (earnings before tax and interest as a ratio of sales)
trend in the range of a 20% increase a year from Operations. To
achieve these new goals, six drivers have been defined: improve
business excellence; growth through innovation; continued
optimization of the business portfolio; strengthening synergy
management; transforming Siemens into an e-company; and global market
penetration, with a focus on the U.S. and China.
Outlook for fiscal 2001 Despite imponderables in the economy and
exchange rates, the relevant markets will maintain their present
dynamic. The company anticipates double-digit growth in sales and
orders. Earnings growth is expected to considerably exceed sales
growth. The clear priority is to further strengthen company
profitability.
Siemens Groups-EBIT margin targets
EBlT-margin FY  Medium-term
              2000 in %       margin target
                              in%
   ICN        5,1             7-10
   ICM        7,8             8-11
   SBS        1,0             5-6
   A&D       10,6            11-13
   I&S        2,6             4-6
   PL        10,4            11-13
   SBT        5,7             7-9
   PG         0,7            10-13
   PTD        1,3             5-7
   TS         1,8             5-7
   AT         2,3             5-6
   MED        9,0            10-12
   Osram      8,8            10-11
End of message
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