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Siemens Expects Around $21 Billion in New Orders From Stimulus Programs Worldwide

Posted on: Monday, 22 June 2009, 01:00 CDT

Green technologies will account for 40 percent of this planned order volume by the end of 2012

MUNICH, Germany, June 22 /PRNewswire-FirstCall/ -- Siemens expects to win new orders of around $21 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 about $8 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. In the U.S., Siemens expects orders stemming from the stimulus program of roughly $8 billion. "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 Loscher. "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," Loscher added.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070904/SIEMENSLOGO )

To overcome the global economic crisis, stimulus programs of around $2.7 trillion globally have been announced and, in some cases, already initiated. Around one third of this total - or almost $1 trillion - 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 about $210 billion globally. Given the company's current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around $21 billion, of which approximately $8 billion will likely come from environmental technologies. In fiscal 2008, Siemens' environmental technologies generated revenue of around $26 billion. The company intends to increase this figure to $35 billion by 2011.

The company has already been involved in helping to build the infrastructures of many of the countries now working to revive their economies through additional investments. The America Recovery and Reinvestment Act (ARRA) in the U.S., for example, is a program which will also help ensure stability and growth for Siemens' 69,000 employees working in more than 800 locations throughout all 50 states. "We have been here for more than 100 years," said George Nolen, President and CEO of U.S.-based Siemens Corporation. "Our solutions are at work every day for America today where we are part of the fabric of this nation - generating one-third of the nation's power, providing public transportation solutions, producing lighting and control systems, processing mail and purifying water. And we are committed to continuing these efforts."

In the past five years, Siemens has invested more than $25 billion in the U.S. - bolstering its portfolio in Energy, Industry and Healthcare - sectors developed by Siemens to answer the needs created by the megatrends of urbanization, globalization, aging populations and climate change. "In the past three month alone, in a down economy, we have invested over $100 million for new or expanding manufacturing - helping provide more energy-efficient technologies - and creating some 625 jobs," Nolen emphasized. "We are strengthening our ongoing commitment to helping this country grow and prosper, and we believe this will be done primarily through sustainable technologies."

At slightly more than $120 billion, the share of the U.S. stimulus program's portion relevant for Siemens represents the largest share of the worldwide total. China is in second place with a Siemens-relevant share of approximately $35 billion, followed by Germany with a share of around $7 billion. Major parts of these amounts are earmarked for green technologies. For example, investments in green technologies account for around 50 percent of the Siemens-relevant share of China's stimulus program and for about 60 percent of the corresponding share of Germany's stimulus program. "The various governments are strongly focused on sustainable investments. Siemens can help other countries to reach their climate protection targets, especially in close partnership with the local communities," said Peter Loscher.

"Governments should be lauded for ensuring that the majority of these amounts are earmarked for green technologies," said Nolen. He continued, "we are especially excited to represent what we see as a growing 'green' industrial manufacturing sector. This area has our full support, and with continued investment and R&D, we also believe it will be a growth area representing not only more jobs but also a growing supply chain."

Siemens AG (NYSE: SI) is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With 420,000 employees in 190 countries, Siemens reported worldwide sales of $116.6 billion in fiscal 2008. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of $22.4 billion and employs approximately 69,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit www.usa.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.

SOURCE Siemens Corporation

Source: PR Newswire

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