Siemens is thinking of higher sales growth

Published by: MRT

Published on:

Siemens is thinking of higher sales growth

Siemens has set itself higher goals under its new boss, Roland Busch. Over the next three to five years, sales are expected to grow by an average of 5 to 7 percent instead of the previous target of 4 to 5 percent. Earnings per share should increase even faster: on average, adjusted for the effects of acquisitions, an increase in the high single-digit percentage range is targeted. That means roughly a value between 8 and 10 percent.

After the large-scale restructuring of the past few years – as the last major step, Siemens spun off its energy business last year – the company is setting itself “new, ambitious financial goals,” said CFO Ralf Thomas, according to the announcement. Investors should also benefit from these with further share buybacks for up to 3 billion euros and a further increasing dividend. Specifically, Siemens does not want to drop below dividend levels once it has reached dividend levels.

For the current fiscal year, Siemens continues to expect a profit after taxes of between 5.7 billion and 6.2 billion euros. That also including the burdens that will result from the acquisition of Varian Medical Systems.

Siemens intends to make extensive changes in the profitable Digital Industries division. A significant part of this is to be offered as software-as-a-service. According to Siemens, this ensures more continuous sales and opens up new target groups, especially for smaller companies. In the transition phase, however, this depresses the numbers because the money is no longer paid for the software license at the beginning, but regularly. SAP, for example, is experiencing a similar development.


(anw)

Disclaimer: This article is generated from the feed and not edited by our team.