- Revenue was €14.2 billion, nearly level with the same quarter a year ago, as increases at Siemens Healthineers and Mobility offset a decline at Digital Industries; orders declined 8%, to €15.1 billion, on sharply lower volume from large orders at Mobility
- On a comparable basis, excluding currency translation and portfolio effects, revenue declined 1% and orders came in 9% lower; the book-to-bill ratio of 1.06 remained well above one
- Adjusted EBITA Industrial Businesses was significantly lower at €1.6 billion, with all industrial businesses showing effects from the COVID-19 pandemic; Adjusted EBITA margin Industrial Businesses of 12.1% was held back also by severance charges of €0.2 billion, taking 1.2 percentage points
- Net income, including a loss of €0.3 billion from discontinued operations, was €0.7 billion compared to €1.9 billion in Q2 FY 2019, which benefited from income of €0.2 billion from discontinued operations as well as a lower tax rate; basic earnings per share (EPS) declined to €0.80
- Given the current situation, we can no longer confirm our original guidance for fiscal 2020; for our new guidance, see page 5 of this document
At the end of the second quarter of fiscal 2020, Gas and Power and Siemens Gamesa Renewable Energy (SGRE) were classified as held for disposal and discontinued operations. Prior-period amounts are presented on a comparable basis.
We delivered a robust quarter given the serious circumstances. I am particularly impressed with my team that we are able to keep the original timeline for the spin-off of our energy business. While we expect to reach the bottom in the third quarter of fiscal 2020, we continue to keep the health and safety of our partners and employees as our first priority, while maintaining business continuity as much as responsibly possible.
Joe Kaeser, President and Chief Executive Officer of Siemens AG
Please read the complete Earnings Release and Financial Results:
Earnings Release Q2 FY 2020: Robust performance in complicated times
Financial Publications are available for download at: www.siemens.com/ir
Outlook
Siemens performed solidly in the second quarter of fiscal 2020 even as the economic consequences of the COVID-19 pandemic began to impact our operations and our financial results. We expect even stronger impacts from the pandemic on business development in our fiscal third quarter. Beyond the third quarter of fiscal 2020, macroeconomic developments and their influence on Siemens currently cannot be reliably assessed. Therefore, we can no longer confirm our original guidance for fiscal 2020.
We now expect a moderate decline in comparable revenue in fiscal year 2020, net of currency translation and portfolio effects, with the book-to-bill ratio remaining above 1. The decline in demand most strongly affects our Operating Companies Digital Industries and Smart Infrastructure.
We adhere to our plan to complete the spin-off and public listing of Siemens Energy before the end of fiscal 2020. We expect to record a spin-off gain within discontinued operations, the amount of which cannot yet be reliably forecast. We continue to expect material impacts on Net income from spin-off costs and tax expenses related to the carve-out and sub-group creation of Siemens Energy.
Given the above-mentioned circumstances we currently refrain from giving guidance for basic EPS from Net income for fiscal 2020.