Siemens (SIEGY) Q4 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Joe Kaeser – President and CEO

A present weak global environment

“As for fiscal 2016 we delivered on what we promised in August after raising our guidance twice…despite a weaker than expected global environment and continued customer returns to invest in many of our end markets….The reasons are manifold…there is some uncertainty after the Brexit vote and obviously also about the newly elected government in the United States is going to do. There about nationalistic tendencies and populism all across the world which – as well could impact free trade. Just to name a few.”

…which is expected to continue

“we expect the market environment to remain challenging due…to continued geopolitical tensions and ongoing insufficient capacity utilization…The Brexit vote created further reluctance in investment decisions and we do see only insignificant faster global growth in 2017 as compared to 2016.”

The devalued Pound expected to be a boon

“From a foreign exchange perspective, we see some modest negative topline impact also due to the devaluation of the British pound.”

Ralf Thomas – CFO

A positive surprise in automotive industry

“At the moment, automotive to be honest with you has been surprising me positively, with the significant increase in the marketplace in China. The US manufacturing developing very flattish so far. Automotives are still being one of the best performing industries there with moderate growth rates being reported also officially and machinery continues to suffer and shows a modest decline from a markets perspective in the US…The European Union has only modest growth potential in total in that industry field and the demand for motor vehicles still confirms a moderate growth.”