Siemens Backs FY21 Profit View, To Buy Back Up To EUR 3 Bln Shares; Unveils New Growth Strategy

Germany's Siemens AG (SIEGY.PK,SMAWF) Thursday said it continues to expect fiscal 2021 net income in the range of 5.7 billion euros to 6.2 billion euros.

The full-year outlook now includes the previously announced burdens in connection with the acquisition of Varian Medical Systems, Inc. In the current quarter, the favorable business development continues.

As part of its Capital Market Day, the company announced progressive dividend policy, as well as new five-year share buyback program of up to 3 billion euros, which will begin in fiscal 2022 and run until 2026.

In its Capital Markets Day, the company presented new growth strategy to accelerate high-value growth as a focused technology company.

The company now projects comparable annual revenue growth of 5 percent to 7 percent over the business cycle, compared to previous outlook of 4 percent to 5 percent.

Annual increase in earnings per share before purchase price allocations or pre PPA is expected in high-single-digit percentage range.

Following the spin-off of Siemens Energy in 2020, Siemens said it is now a focused technology company that is addressing industry, infrastructure, transportation, and healthcare.

The addressable markets for Digital Industries, Smart Infrastructure, Mobility and Siemens Healthineers alone amount to a volume of 440 billion euros, with 2020 as the base year. These markets are set to grow 4 percent to 5 percent per year until 2025.

Siemens also intends to enter highly attractive adjacent markets with an additional volume of 120 billion euros.

For the future, Siemens expects its fiscal 2020 digital revenue of 5.3 billion euros to grow at a compound annual growth rate of around 10 percent over the business cycle until 2025.

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