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Foundry Daily News

25. June 2009

Rays of recovery - Siemens expects EUR 15 billion in new orders

Siemens expects to win new orders of around EUR 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% or approximately EUR 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. Mr Peter Löscher president & CEO of Siemens said that "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. 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."

He said that to overcome the global economic crisis, stimulus programs of around EUR 2 trillion have been announced and, in some cases, already initiated. Roughly one third of this total or some EUR 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 EUR 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 EUR 15 billion, of which some EUR 6 billion will likely come from environmental technologies. In fiscal 2008, Siemens’ environmental technologies generated revenue of about EUR 19 billion. The company intends to increase this figure to EUR 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.

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