This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Siemens AG Management Discusses Q3 2012 Results - Earnings Call Transcript

Peter H. Loescher

Thank you, Mariel. Welcome, and good morning to everybody. Before I walk you through Q3, let me give you a brief perspective on key macroeconomic indicators relevant for our business. Overall, the near-term global GDP growth expectations have come down and are somewhat sluggish, with growth rates around 2.7% for 2012 and 3% for 2013. We have seen quite a cooling down in demand in important end markets that are driven particularly by the export-oriented German industry, as you can also see from the current IFO level or VDMA numbers.

The investment climate in our -- in a number of Western European countries remains very weak due to the ongoing austerity measures and restricted access to and high cost of capital. In addition, important emerging markets, like Brazil and India, have lost speed as well. The lower growth level of industry value added in China points also weakening investment in certain customer industries in China, like machine tool builder, rail equipment or automotive. We don't expect any recovery in our end markets in China in 2012, but we believe that growth could resume in the course of 2013. All in all, we expect economic environment for Siemens to be challenging over the next couple of quarters, and thus, cost efficiency and productivity need to be in the forefront of our management approach.

This leads me to the performance in this third quarter, which was mixed with, on the one hand, positive developments such as continued revenue growth and on the other hand, some disappointments in order intake and profitability in some businesses. The macroeconomic environment has weakened in a number of our key markets during the current quarter, which clearly affected our bookings. Growth rates have softened now also in Germany, while the BRIC countries are increasingly impacted by a lower demand from the worldwide customers. As already indicated, this has had a subsequent negative impact on the structural mix of our short-cycle businesses.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%
TSLA $247.54 -0.07%
YHOO $36.59 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs