Siemens Raises Growth Target, to Launch EUR3 Billion Share Buyback
24 Juni 2021 - 09:49AM
Dow Jones News
By Kim Richters
Siemens AG on Thursday set new targets for stronger revenue
growth and said it would launch a share buyback program of up to 3
billion euros ($3.58 billion).
The German engineering conglomerate said it would target
comparable annual revenue growth for the group of 5% to 7% over its
business cycle of the next three to five years, up from previously
4% to 5%.
In its Digital Industries business, Siemens will transfer a
significant part of the software business to a
software-as-a-service offering, reporting annual recurring revenue.
Due to the transition and related effects, Siemens kept the
division's target for a profit-margin range of 17% to 23%.
It adjusted targets for profit margins in the Smart
Infrastructure and Mobility divisions. Smart Infrastructure now
aims for a margin of 11% to 16% --previously 10% to 15%-- and
Mobility is targeting 10% to 13, from 9% to 12%.
The targets apply from the company's fiscal year 2022, which
starts in October.
"Digitalization, automation and sustainability are growth
engines for our business. Here, our core business and our digital
business reinforce each other in a virtuous cycle," said Siemens's
Chief Executive Roland Busch.
Siemens will also start a share buyback program of up to EUR3
billion that will run from October for five years. It also said its
total shareholder return would include a progressive dividend
policy.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
June 24, 2021 03:35 ET (07:35 GMT)
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