Earnings Release and Financial Results Q1 FY 2018: Strong order growth highlights successful first quarter
Book-to-bill ratio rose to reach 1.13, the highest ratio since booking of large Egypt orders in Q2 FY 2016.
On a comparable basis, excluding currency translation and portfolio effects, orders increased 7% and revenue grew 1%.
Industrial business profit at €2.2 billion, down 14% due mainly to a sharp decline in Power and Gas which more than offset excellent performance in the short-cycle businesses and Mobility; current quarter impacted by negative currency effects while Q1 FY 2017 benefited from a portfolio gain; Industrial business profit margin at 11.0%.
Net income rose 12% to €2.2 billion; the current period included a largely tax-free gain from the sale of shares in OSRAM Licht AG and benefited from sharply lower income tax expenses due mainly to the revaluation of future tax positions following U.S. tax reform; basic earnings per share (EPS) increased to €2.68 from €2.41 in Q1 FY 2017.
"The first quarter underlines the strength of our company. We take advantage of the growth momentum of the global economic upturn and set benchmarks in industrial digitalization. We clearly understand our opportunities and we know what we have to do.", - said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
Siemens adopted the accounting standard IFRS 15 (Revenue from Contracts with Customers) as of the beginning of fiscal 2018. Prior-period amounts are presented on a comparable basis.