Siemens third quarter 2020 results

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Business activity in China has recovered rapidly since the onset of the coronavirus health crisis, the CEO of one of Europe’s largest manufacturers told CNBC on Thursday.“China has been able to recover very, very quickly from the origin of the crisis. In our industry, China is actually up from the period last year, so we have seen higher demand than before the crisis, “Joe Kaeser, CEO of Siemens, said told CNBC’s Annette Weisbach.

Between April and June, Chinese orders increased by 6% compared to a year ago. All other jurisdictions where Siemens operates, except Germany, experienced a decline in the number of orders during the same period.

Siemens on Thursday announced net profit of 535 million euros ($ 635 million) for the three months to June. This was a 53% drop from a year ago. Despite the tough economic environment, Siemens also said higher income taxes helped lower profits.

Other highlights of the quarter:

  • Revenues reached 13.5 billion euros, 5% less than a year ago.
  • Free cash flow jumped to 2.5 billion euros from 434 million euros a year ago.

“All units, but especially Siemens Mobility, have contributed to this substantial improvement,” the German company said in a statement about the 200% surge in cash flow. This was supported by the decision to halt some operations, which generated positive free cash flow of 433 million euros and a series of asset management measures at Siemens Energy, he said.

For the remainder of the year, Siemens expects the ongoing economic crisis following the coronavirus pandemic to continue to affect its business.

“Going forward, there is some volatility associated with the likelihood that we’ll see a second wave,” Kaeser said.

However, the company still plans to complete the spin-off and public listing of Siemens Energy before the end of its fiscal year.

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