Siemens Scraps 2020 Guidance Amid Virus Outbreak

Siemens managed to keep its production facilities operational during the crisis by focusing on long-term orders and implementing safety measures. Despite staying open, Siemens faces challenges in profit visibility and recovery, particularly in short-cycle businesses. The company benefits from its automation division, which is thriving as factories seek to distance employees. Siemens' diverse business includes a significant oil and gas division, which is impacted by the oil price crash. The company sees potential in automation as a long-term trend, possibly bringing factory jobs back to high-earning countries.

What was a key reason Siemens could keep its factories running during the crisis?

• They received government subsidies.

• They had long-term orders for trains and gas turbines.

• They were producing essential medical equipment.

• They shifted to remote work for all employees.

What challenge does Siemens face despite staying operational during the crisis?

• High employee turnover.

• Inability to maintain revenue.

• Shortage of raw materials.

• Lack of visibility on profit recovery.

How has Siemens' automation business benefited during the crisis?

• Government contracts for automation.

• Expansion into new markets.

• Higher need for automated factory processes.

• Increased demand for remote work solutions.

What impact did the oil price crash have on Siemens?

• It led to a net loss in the quarter.

• It had no significant impact.

• It increased their market share.

• It boosted their gas and power division.

What long-term trend does Siemens anticipate as a result of the crisis?

• A decrease in global trade.

• A shift towards more automation in factories.

• Increased reliance on manual labor.

• A focus on local supply chains only.