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Siemens earnings and orders dip in first quarter

German engineering giant Siemens said on Wednesday that earnings and orders fell in the first quarter, but it was hoping a shake-up of its businesses would nevertheless enable it to meet its full-year targets.

Published: 23 January 2013 12:03 CET
Siemens earnings and orders dip in first quarter
Photo: DPA

“In an uncertain economic environment, we got off to a solid start in fiscal 2013,” chief executive Peter Löscher said in a statement.

But he cautioned: “For the rest of the year, we don’t expect any tailwinds from the global economy to help us reach our ambitious goals.”

Siemens, which makes a wide range of different industrial equipment from wind power generators to complete power plants and trains, operates its business year from October to September. And in the first quarter, the three months to December, new orders declined by 3.0 percent to €19.141 billion ($25.5 billion).

Revenues, on the other hand, edged up by 2.0 percent to €18.128 billion, but net profit fell by 12 percent to €1.214 billion.

Overall underlying profit, which Siemens calculates as “total sectors profit”, rose by 4.0 percent to €1.7 billion, which is equivalent to a profit margin of 9.3 percent, up from 9.0 percent in the same quarter a year earlier.

Looking ahead to the full year, Siemens said “the outlook remains unchanged.” Orders and revenues were projected to show “moderate growth…approaching the level of fiscal 2012.”

Full-year underlying profit was forecast to come in a range of €4.5-5.0 billion, compared with €5.2 billion last year, it added. That profit target included some €1.0 billion in one-off charges related to the planned shake-up of the group’s businesses.

CEO Löscher said the main focus this year would be to roll out reorganisation measures aimed at lifting the group’s overall profit margin to “at least 12 percent by fiscal 2014.”

In addition to the targeted acquisition of specialised companies, Siemens has also decided to sell off a number of activities, such as solar energy.

Chief financial officer Joe Käser also suggested the group would be in a position to sell off its water treatment activities, as hoped.

Siemens was holding its annual general meeting on Wednesday where, among other items on the agenda, shareholders were to vote on the proposed spin-off of lighting unit Osram.

Siemens shares were among the biggest losers on Frankfurt’s blue-chip DAX 30 index on Wednesday, shedding 1.45 percent in a generally firmer market.

AFP/mry

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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