Siemens with an order worth billions: What else is possible with the DAX title

shares in this article

indexes in this article

by Stephan Bauer, Euro on Sunday

Dhe relations with Egypt have traditionally been good at Siemens. In June 2015, the Bavarians received a sensational order worth billions from the North African country. At that time, the energy technology division benefited from a power plant order worth eight billion euros. Seven years later it is another mega order from the land of the pharaohs that makes the board smile. The Mobility traffic technology division has an order volume of 8.1 billion euros in its books. “This is the largest order in the history of Siemens,” said Siemens CEO Roland Busch.

Siemens and partners are building a high-speed network that will also include the “Suez Canal on Rails” announced in September 2021, a 660-kilometer route between the port cities of Ain Sochhna on the Red Sea and Alexandria on the Mediterranean. All the routes are 2,000 kilometers long, they connect 60 cities and offer access to 90 percent of the Egyptian population. The network includes connections between Cairo and Abu Simbel on the border with Sudan and between the archaeological center of Luxor and the seaside resort of Hurghada. The Siemens Mobility division is supplying 41 high-speed trains, 94 regional trains and 41 freight locomotives, eight depots and freight yards. A 15-year maintenance agreement is also part of the contract. “With our latest rolling stock, signaling and maintenance technology, Egypt will have the sixth largest and most modern high-speed rail network in the world,” says Busch.

forecasts raised

The Siemens boss can use success stories right now. Because the Munich team recently had to announce a slump in earnings in the half-year figures. From September to the end of March, net profit fell by half compared to the previous year to 1.2 billion euros. One reason was charges of around 600 million euros due to Siemens’ withdrawal from Russia. The depreciation mainly affected the Mobility railway division. By the end of the current financial year, further burdens could follow from the withdrawal from Russia, and there is talk of a low to mid three-digit million amount.

The Russia effect had left its mark on the share. The DAX title is fundamentally but by no means fragile. Sales and incoming orders rose by seven and 22 percent, respectively, from January to March. Boss Roland Busch had recently raised the target for group sales in the fiscal year as well as the growth targets for the core divisions Digital Industries (DI) and Smart Infrastructure (SI). Only in the area of ​​mobility did the specifications remain at the original level.

updraft: According to the numbers, the stock had come under pressure. Technically, a bottom formation is indicated. Opportunity.

____________________________________

Image Credits: Gil C / Shutterstock.com, MICHELE TANTUSSI/AFP//Getty Images