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Munich, Germany, 2009-Jun-22
Siemens expects to win new orders of around €15 billion in the next three fiscal years 2010 until 2012, which will be generated by government stimulus programs already announced around the world. Green technologies are expected to account for 40 percent or approximately €6 billion of this total, which will significantly increase the share of the company’s revenues from its environmental portfolio in the future. Siemens based this forecast on an initial systematic analysis of the largest stimulus programs. “With their programs, governments worldwide are sending the right signal. Against the backdrop of the worst global economic crisis in decades, these government measures are at least partially cushioning, in some cases, sharp declines in private-sector demand. They should also have a stabilizing effect on our business,” said Siemens President and CEO Peter Löscher. “In addition, the government programs will safeguard jobs worldwide. The large portion of the investments in environmental technologies will probably create new green jobs as well. This applies particularly to the green infrastructure giant Siemens,” Löscher added.
To overcome the global economic crisis, stimulus programs of around €2.0 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some €700 billion – is slated for investment in infrastructure projects. The remainder is accounted for example by tax cuts for private households. The total volume of planned infrastructure expenditures relevant for Siemens comes to approximately €150 billion in the next three fiscal years. Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of roughly €15 billion, of which some €6 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of about €19 billion. The company intends to increase this figure to €25 billion a year by 2011.
Siemens has strong roots in the majority of its local markets – and has had these, in most cases, for over 100 years. Local value-added, a reputation as a respected and important employer and the social commitment of the company and its local employees make Siemens a trusted and valued partner in regions all around the world. “We’re firmly rooted in Germany. Our partners – who are often small to medium-sized companies – will also profit from the stimulus programs in Germany and other countries round the world,” said Siemens President and CEO Peter Löscher.
In a country-by-country comparison, the shares of the stimulus program that Siemens can address are the largest in the U.S., where they total slightly more than €85 billion. China comes next with a Siemens-relevant share of around €25 billion, followed by Germany with a share of roughly €5 billion. Major parts of these stimulus programs are earmarked for green technologies. For example, investments in green technologies account for nearly 50 percent in China and for about 60 percent in Germany. “The various governments are strongly focused on sustainable investments. Siemens can help other countries reach their climate protection targets, particularly in close partnership with local communities,” said Löscher.
Around 420,000 Siemens employees in 190 countries are working to provide answers to the toughest questions facing society. The company has oriented all its activities toward the megatrends of climate change, urbanization and shifting demographics.
Siemens AG (Berlin and Munich) is a global powerhouse in electronics and electrical engineering, operating in the industry, energy and healthcare sectors. The company has around 420,000 employees (in continuing operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of solutions for individual requirements. For over 160 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. In fiscal 2008, Siemens had revenue of €77.3 billion and a net income of €5.9 billion (IFRS). Further information is available on the Internet at: www.siemens.com.
This document contains forward-looking statements and information – that is, statements related to future, not past, events. These statements may be identified by words such as “expects,” “looks forward to,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “will,” “project” or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens’ control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions (including margin developments in major business areas and recessionary trends); the possibility that customers will delay conversion of booked orders into revenue or that our pricing power will be diminished by continued adverse market developments, to a greater extent than we currently expect; the behavior of financial markets, including fluctuations in interest and exchange rates, commodity and equity prices, debt prices (credit spreads) and financial assets generally; continued volatility and further deterioration of the capital markets; the commercial credit environment and, in particular, additional uncertainties arising out of the subprime, financial market and liquidity crises; future financial performance of major industries that we serve, including, without limitation, the Sectors Industry, Energy and Healthcare; the challenges of integrating major acquisitions and implementing joint ventures and other significant portfolio measures; introduction of competing products or technologies by other companies; lack of acceptance of new products or services by customers targeted by Siemens; changes in business strategy; the outcome of pending investigations and legal proceedings, including corruption investigations to which we are currently subject and actions resulting from the findings of these investigations; the potential impact of such investigations and proceedings on our ongoing business including our relationships with governments and other customers; the potential impact of such matters on our financial statements; as well as various other factors. More detailed information about certain of these factors is contained throughout this report and in our other filings with the SEC, which are available on the Siemens website, www.siemens.com, and on the SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
Reference Number: AXX200906.65 e
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