Siemens Expecting Economic Stimulus Packages to Bring Them €15 Billion Including €6 Billion in Cleantech

Siemens expects to win new orders of around €15 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 approximately €6 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.

“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 Löscher.

“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,” Löscher added.

To overcome the global economic crisis, stimulus programs of around €2.0 trillion have been announced and, in some cases, already initiated. Roughly one third of this total – or some €700 billion – 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 approximately €150 billion in the next three fiscal years. Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of roughly €15 billion, of which some €6 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of about €19 billion. The company intends to increase this figure to €25 billion a year by 2011.

Siemens has strong roots in the majority of its local markets – and has had these, in most cases, for over 100 years. Local value-added, a reputation as a respected and important employer and the social commitment of the company and its local employees make Siemens a trusted and valued partner in regions all around the world. “We’re firmly rooted in Germany. Our partners – who are often small to medium-sized companies – will also profit from the stimulus programs in Germany and other countries round the world,” said Siemens President and CEO Peter Löscher.

In a country-by-country comparison, the shares of the stimulus program that Siemens can address are the largest in the U.S., where they total slightly more than €85 billion. China comes next with a Siemens-relevant share of around €25 billion, followed by Germany with a share of roughly €5 billion. Major parts of these stimulus programs are earmarked for green technologies. For example, investments in green technologies account for nearly 50 percent in China and for about 60 percent in Germany.

“The various governments are strongly focused on sustainable investments. Siemens can help other countries reach their climate protection targets, particularly in close partnership with local communities,” said Löscher.

Around 420,000 Siemens employees in 190 countries are working to provide answers to the toughest questions facing society. The company has oriented all its activities toward the megatrends of climate change, urbanization and shifting demographics.

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