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Siemens Reports Fourth-Quarter Profit Decline, Raises Dividend on Strong Cash Flow

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Andrew R. Michaud

• November 16, 2023

Siemens, the German industrial company, has announced a decline in fourth-quarter profit. However, the company saw an increase in revenue and has lifted its dividend for the year due to higher cash flow.

Decline in Profit, but Rise in Revenue

In the fourth quarter, Siemens reported a net profit of 1.72 billion euros ($1.87 billion), which is a decrease from 2.70 billion euros in the same period last year. Despite this decline, the company experienced a 4% growth in revenue, reaching 21.39 billion euros. Furthermore, while orders remained relatively unchanged compared to last year at 21.80 billion euros, on a comparable basis, both revenue and orders increased by 10% and 6% respectively.

Strong Cash Flow Leads to Dividend Increase

Siemens exceeded 10 billion euros in free cash flow for the year and, as a result, plans to propose a dividend of 4.70 euros per share, up from 4.25 euros per share in 2022.

Positive Outlook for the Future

Looking ahead, Siemens expects a 4% to 8% growth in revenue on a comparable basis. Additionally, the company anticipates earnings per share before purchase price allocation accounting to be between 10.40 euros and 11 euros, excluding the effects of its investment in Siemens Energy.