Siemens (NYSE: SI) expects to win new orders of around $21 billion in the next three fiscal years (2010-2012), generated by government stimulus programs already announced around the world.
Green technologies are expected to account for 40% or about $8 billion of this total, which would 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. In the U.S., Siemens expects orders stemming from the stimulus program of roughly $8 billion.
"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 Loscher.
To overcome the global economic crisis, stimulus programs of around $2.7 trillion globally have been announced and, in some cases, already initiated. Around one third of this total–or almost $1 trillion–is slated for investment in infrastructure projects. The total volume of planned infrastructure expenditures relevant for Siemens comes to about $210 billion globally, the company said.
Given the company’s current average market share worldwide, these expenditures can be expected to generate new orders for Siemens of around $21 billion, of which approximately $8 billion will likely come from environmental technologies.
In fiscal 2008, Siemens’ environmental technologies generated revenue of around $26 billion. The company intends to increase this figure to $35 billion by 2011.
At slightly more than $120 billion, the share of the U.S. stimulus program’s portion relevant for Siemens represents the largest share of the worldwide total. China is in second place with a Siemens-relevant share of approximately $35 billion, followed by Germany with a share of around $7 billion. Major parts of these amounts are earmarked for green technologies. For example, investments in green technologies account for around 50% of the Siemens-relevant share of China’s stimulus program and for about 60% of the corresponding share of Germany’s stimulus program.
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