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Investing.com -- Siemens AG (ETR:SIEGn) on Thursday reported a 28% increase in third-quarter orders to €24.7 billion, driven by major rail contracts, while net income rose 5% year over year to €2.2 billion.
Revenue increased 5% on a comparable basis to €19.4 billion.The Mobility segment booked more than €5 billion in large orders, including a €3.5 billion contract for a turnkey rail system in Egypt and a €1.7 billion high-speed train order in the United States.
Revenue in the unit rose 19% to €3.1 billion, and profit grew 26% to €286 million.
Free cash flow from continuing and discontinued operations rose 38% to €2.9 billion, with improvements across all industrial businesses.
Lower tax payments contributed to the increase, falling to €0.8 billion from €1.2 billion in the prior-year quarter.
Profit from Siemens’ Industrial Business declined 7% to €2.8 billion. The profit margin fell to 14.9% from 16.5%, primarily due to weaker performance in the Digital Industries segment.
Earnings per share rose to €2.61 from €2.51, while EPS before purchase price allocation increased 5% to €2.78, reflecting a €0.15 drag from recent acquisitions.
The German company completed its acquisitions of Altair and Dotmatics ahead of schedule, with related effects included in the quarter. Siemens reaffirmed its full-year outlook and expects EPS pre-PPA between €10.40 and €11.
The outlook excludes contributions from the acquisitions and the sale of Innomotics, which added €2.44 per share through the first nine months.
Digital Industries revenue fell 10% to €4.4 billion, driven by a 30% drop in software sales compared to a strong prior-year quarter.
Profit in the segment declined 43% to €642 million. Automation revenue grew, supported by demand in China and the U.S., but did not offset the software weakness.
Smart Infrastructure reported €5.7 billion in revenue, up 9% on a comparable basis. Profit rose 16% to €1.1 billion, and margin increased to 18.8% from 17%. Orders declined 1% to €5.7 billion.
Siemens Healthineers posted a 4% revenue increase to €5.7 billion, led by imaging. Profit rose 8% to €821 million.
Orders fell 1%. The diagnostics business saw a decline in profitability due to transformation-related charges.
Siemens Financial Services recorded earnings before tax of €112 million, down from €131 million. Return on equity dropped to 10.3% from 12.8%, impacted by lower income from the equity business.
The order backlog remained at €117 billion. The book-to-bill ratio was 1.28. Return on capital employed declined to 14.6% from 17.3% due to higher capital employed following the Altair acquisition.
Regionally, orders rose 51% in Europe, the C.I.S., Africa and the Middle East; 25% in the Americas; and fell 5% in Asia and Australia. In China, orders declined 21%.