BERLIN (dpa-AFX) - German conglomerate Siemens AG (SIEGY, SMAWF) reported that its net income attributable to shareholders for third quarter of fiscal year 2017 increased to 1.41 billion euros or 1.70 euros per share from 1.33 billion euros or 1.62 euros per share in the previous year.
Meanwhile, Siemens said that its Supervisory Board has extended Joe Kaeser's appointment as President and Chief Executive Officer ahead of schedule. His term of office will now extend until the Annual Shareholders' Meeting in 2021. This move is intended to ensure the continuity and stability needed for sustainable and successful implementation of the company's Vision 2020 strategy program.
The company noted that Revenue for the third-quarter rose 8% year-over-year to 21.4 billion euros, including a strong performance by short-cycle businesses.
'Our global team delivered a solid quarter with revenue up 8% and net income growing by 7%. Our digital enterprise business impressively underscored its leading position in the market. We are fully on track with Vision 2020 and for another strong year,' said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Orders came in 6% lower, at 19.8 billion euros, due to sharply lower volume from large orders at Power and Gas and at Siemens Gamesa Renewable Energy, the business resulting from the merger of Siemens' wind power business with Gamesa Corporación Tecnológica S.A. beginning with third-quarter of fiscal year 2017; the book-to-bill ratio for Siemens overall was 0.93.
For fiscal 2017, the company continues to expect modest growth in revenue, net of effects from currency translation and portfolio transactions, and anticipate that orders will exceed revenue for a book-to-bill ratio above 1. It still expects the profit margin of Industrial Business in the range of 11.0% to 12.0%, and basic earnings per share of 7.20 euros to 7.70 euros.
Copyright RTT News/dpa-AFX