Siemens Expects Around $21 Billion in New Orders From Stimulus Programs
Worldwide
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.
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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
Media Relations: Ms. Elizabeth Cho, Siemens Corporation, +1-212-258-4589,
elizabeth.cho@siemens.com
