Siemens (SIE) increases its dividend thanks to record cash flow

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Siemens (SIE) plans to increase its dividend to € 4.00 per share, from € 3.50 in 2020, after exceeding its net income targets in its first financial year since the cessation of its energy activities.

“We have had a very successful start as a specialist technology company,” said Managing Director Roland Busch.

This included revenue up 11.5% to € 62.3 billion for the full year, meeting targets that were raised after third quarter results, and net profit of 6.7 billion euros exceeding targets.

Free cash flow for the full year reached a record level of 8.2 billion euros, the results published today showed.

Q4 results

Revenue increased 18% to 17.4 billion euros (19.96 billion euros) in the quarter ended September 30, while orders increased 26% to 19.1 billion euros (21.91 billion euros).

The company’s fourth-quarter net profit fell 29% year-on-year to € 1.33 billion, which it said was due to profits from the Siemens Energy split in the final quarter of 2020.

Revenue increased in all industrial activities and in all reporting regions, with the strongest growth at Siemens Healthineers – its set of medical technology companies – and Digital Industries – specializing in industrial automation and digitization .

He cited the continued recovery mainly in autos and machine building, despite recent economic data from countries like Germany indicating severe declines in auto production.

Siemens said it had “mitigated” global challenges, including supply chain disruptions, which particularly affected electronic components and raw materials, and had recorded strong and increasing order intake across all businesses. industrial.

Investor performance

“Our shareholders are also benefiting from this successful performance,” said Ralf P Thomas, Chief Financial Officer of Siemens. “With a very attractive dividend, a strong evolution of the share price and our new share buyback program, we continue to offer a very attractive total return for the shareholder.”

In June, Siemens announcement it would launch a five-year share buyback program of up to € 3 billion, starting in fiscal year 2022.

The Siemens share price rose 2.68% to € 150.72 at 10:30 am CET on the Frankfurt Stock Exchange on Thursday.

It has gained more than 26% in the last year since the Siemens Energy split.

Slow and stable outlook

The company said its outlook for fiscal 2022 was based on continued growth in global GDP, but with slowing momentum.

He added that he expects supply chain constraints and other pandemic challenges to ease over the year, allowing his industrial activities to continue to grow, and expects average revenue growth.

Read more: Siemens Energy (ENR) proposes a dividend in the annual results

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