Siemens posts record orders despite drop in annual profit

German industrial giant Siemens reported lower annual net profit on Thursday despite record orders and stronger industrial earnings.

Net profit fell by around €900 million to €9.5 billion ($10.5 billion) in the year to September, the Munich-based company said. The previous year's result, however, had been boosted by a one-off gain of about €2.1 billion from the sale of electric motor manufacturer Innomotics.

Profit from Siemens' industrial business, which was unaffected by the sale, rose by 13% to a record level.

Orders also reached a record €108 billion, well above revenue, which rose from €78.9 billion to €83.4 billion.

Siemens' Digital Industries and Smart Infrastructure divisions both performed strongly, with Digital Industries recovering particularly sharply after years of weak demand.

"Industrial AI is an exceptional growth opportunity, and Siemens is built to win in this space," chief executive Roland Busch said.

The company expects further significant increases in revenue and profit in the financial year that began in October and has also raised its medium-term growth targets.

The forecasts reflect plans to relinquish its majority stake in medical technology subsidiary Siemens Healthineers. Both the projections and comparative figures exclude the Healthineers majority stake, while potential gains and costs from the separation are not included.

More than a third of Healthineers is to be distributed to Siemens shareholders next year, with investors receiving one Healthineers share for every two Siemens shares held, chief financial officer Veronika Bienert said.

Siemens also plans to raise its dividend by 15 cents to €5.50 per share.