Siemens reported consolidated earnings results for the first quarter ended December 31, 2017. For the period, the company announced the free cash flow surged to almost €900 million, an increase of 22% over prior year's quarter. The company saw a solid comparable revenue growth of 2%, driven by strong growth in advanced therapies. Net income rose 12% to 2.2 billion; the current period included a largely tax-free gain from the sale of shares in OSRAM Licht AG and benefited from sharply lower income tax expenses due mainly to the revaluation of future tax positions following U.S. tax reform. Revenue was €19,823 million against €19,213 million a year ago. Income from continuing operations was €2,199 million against €1,968 million a year ago. EBITDA was €2,503 million against €2,998 million a year ago. Return on capital employed (ROCE) was 17.9% against 19.2% a year ago. Income from continuing operations before income taxes was €2,345 million against €2,695 million a year ago. Net income attributable to shareholders of Siemens AG was €2,189 million against €1,947 million a year ago. Diluted earnings per share was €2.64 against €2.37 a year ago. Cash flows from operating activities - continuing and discontinued operations was €1,374 million against €1,135 million a year ago. Additions to intangible assets and property, plant and equipment was €502 million against €421 million a year ago. Purchase of investments was €317 million against €125 million a year ago. Diluted earnings per share from continuing operations was €2.62 against €2.35 a year ago.

The company provided earnings guidance for the fiscal 2018. For the period, the company expects the tax rate to be rather at the lower end of the guided range of 27% to 33%. The company expects a mixed picture in market environment in fiscal 2018, ranging from strong markets for short-cycle businesses to unfavorable dynamics in energy generation markets, as well as geopolitical uncertainties that may restrict investment sentiment. For fiscal 2018 the company expects modest growth in revenue, net of effects from currency translation and portfolio transactions, and anticipate that orders will exceed revenue for a book-to-bill ratio. The company expects a profit margin of 11.0% to 12.0% for Industrial Business and basic EPS from net income in the range of 7.20 to 7.70, both excluding severance charges. This outlook excludes charges related to legal and regulatory matters, effects on EPS associated with minorities holding shares in Healthineers following the planned IPO, and potential effects which may follow the introduction of a new strategic program.