- Reconciliation of interests signed for Power and Gas Division and Process Industries and Drives Division in Germany
- Power and Gas to achieve cost savings of about €500 million worldwide, of which €270 million are to be saved in Germany
- Capacity and structure adjustments can now begin in Germany
Siemens and the company's Central Works Council have signed a reconciliation of interests based on the framework agreement reached in May. The goal is to increase the competitiveness of the Power and Gas Division (PG) and the Process Industries and Drives Division (PD). At PG alone, costs are to be reduced – as originally planned – by about €500 million worldwide, with €270 million of this amount to be saved in Germany. Around 2,900 jobs will be cut in Germany instead of the roughly 3,400 announced last November. This reduction in job cuts is due, above all, to the continuation of the location in Görlitz, Germany, and the retention of activities at the Dynamowerk, a Siemens production facility in Berlin. However, the measures are not restricted to capacity adjustments alone. Instead, they are primarily designed to achieve structural improvements and systematically sharpen the company's focus on the technologies of the future.
- Demand for bonds with a total value of €2.75 billion and maturities of five, nine and twelve years 2.5 times higher than issue volume
- Placement directly after summer lull secures favorable financing conditions
After a five-year absence, Siemens has made an impressive return to the euro capital market. For its new bonds, the company generated very strong demand of €6.8 billion. Siemens issued bonds with a total value of €2.75 billion and maturities of five, nine and twelve years. The high demand enabled Siemens to obtain very good interest-rate conditions over all maturities. At the time of price fixing, the average issue yield for all three maturities was 20 basis points (0.2 percentage points) below the initial indications.
- Around 2,170 apprentices and work-study program participants begin their professional life at 20 Siemens locations
- Training further aligned to the requirements of digitalization
- 27 participants in international training program in Berlin
Around 2,170 young people will begin their vocational training next Monday at 20 Siemens locations in Germany alone. Siemens will be training about 1,530 for careers at the company, while a further 640 are from external partners. The ongoing digitalization of the work environment is playing an increasingly important role at Siemens – and in the company's training programs as well. What began in "apprentice corners" back in 1891 is being continued today at advanced, innovative training centers.
- Maier to succeed Klaus Moosmayer, who is leaving the company as of November 30, 2018
Martina Maier (51) has been appointed the new head of the global Compliance Department at Siemens AG. Maier, who currently heads Siemens' Competition Department, will assume the position of Chief Compliance Officer on December 1, 2018. This position has been held since 2014 by Klaus Moosmayer (49), who is leaving the company at his own request.
The Supervisory Board of Siemens AG intends to propose to the Annual Shareholders’ Meeting the appointment of Ernst & Young GmbH, Stuttgart, to serve as independent auditors for fiscal 2019. This is the result of an intensive dialogue between the Supervisory Board, the Audit Committee and the Managing Board of Siemens AG as well as of an extensive tender process pursuant to relevant European statutory provisions. In the view of the aforementioned governing bodies and committee, Ernst & Young presented the most attractive offer in the tender process.
- On a comparable basis, excluding currency translation and portfolio effects, orders rose 21% and revenue was level with the prior-year period
- On a nominal basis, orders climbed 16% to €22.8 billion driven by a higher volume from large orders, while revenue came in at €20.5 billion, 4% lower than the prior-year quarter due primarily to currency translation effects; the book-to-bill ratio was 1.11
- Industrial Business profit was up 2% at €2.2 billion and Industrial Business profit margin was 10.7%; excellent performance by Digital Factory and improvements in many Divisions partly offset by a sharp decrease in profit and profitability at Power and Gas
- Net income of €1.2 billion was held back by substantially higher income tax rate compared to Q3 FY 2017, which also benefited from positive effects in Centrally managed portfolio activities; basic earnings per share (EPS) of €1.36 compared to €1.67 in Q3 FY 2017
"Our global team delivered a strong quarter, highlighted by outstanding order intake, outperforming the market. We diligently address our opportunities and challenges going forward," said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
At its meeting yesterday, the Supervisory Board of Siemens AG approved the company's new Vision 2020+ strategy and reassigned responsibilities within Siemens' Managing Board.
- New company structure: Three "Operating Companies" – "Gas and Power", "Smart Infrastructure" and "Digital Industries" – and the "Strategic Companies" Siemens Healthineers, Siemens Gamesa and the planned company Siemens Alstom
- More entrepreneurial freedom at individual businesses for accelerated growth: Revenue and margin targets raised
- Targeted expansion of digitalization business: Acquisition of mendix
- New growth field: "Internet of Things (IoT) Integration Services"
Siemens is setting the course for long-term value creation through accelerated growth and stronger profitability with a simplified and leaner company structure. The main aim of the Vision 2020+ company strategy is to give Siemens' individual businesses significantly more entrepreneurial freedom under the strong Siemens brand in order to sharpen their focus on their respective markets. Plans also call for strengthening the company's growth portfolio through investments in new growth fields such as IoT integration services, distributed energy management and infrastructure solutions for electric mobility. The concentrated expansion of industrial digitalization, in which Siemens is already the world leader, will make a further contribution. As a result, both the annual revenue growth rate and the profit margin of the company's Industrial Business are expected to increase by two percentage points over the medium term. Basic earnings per share are expected to grow faster than revenue over the medium term.
- Siemens' lightning information service detected about 443,000 lightning strikes in Germany in 2017 – 11,000 more than in 2016
- Garmisch-Partenkirchen was the German district struck most often by lightning, lowest rates were in the city of Pirmasens
- Germany's "capital of lightning" was Mainz, followed by Wiesbaden and Berlin
- At the European level, Slovenia leads the ranking
Garmisch-Partenkirchen District in Upper Bavaria was the German region with the most lightning activity in 2017. Siemens' lightning information service BLIDS (which stands for Blitz-Informationsdienst von Siemens) registered 3.51 lightning strikes per square kilometer in Garmisch-Partenkirchen in 2017. The districts of Main-Taunus and Giessen in the state of Hesse were on second and third place with 3.47 and 3.46 ground flashes per square kilometer, respectively. Germany's lowest concentration of lightning strikes was in the cities of Pirmasens (0.16), Oldenburg and Bonn (both at 0.18). With lightning hitting 2.4 times per square kilometer, Mainz led the country's list of state capitals. Overall, at 443,000 strikes, BLIDS again registered a comparatively low level of atmospheric discharges in Germany – although 2016's record low level, with about 432,000 strikes detected, was exceeded in 2017 by 11,000 (2,5 percent). For the first time, BLIDS is also making data available for Central Europe.
- Siemens report "Cities in the Driving Seat" encourages cities to anticipate and tackle upcoming changes to their infrastructures early
- Report urges urban areas to use connected and autonomous vehicles to refocus urban environments on citizens rather than cars
- Connecting autonomous vehicles to intelligent transport infrastructures can maximize their benefit
- Greatest benefit from autonomous vehicles will emerge from capacity to provide "first and last mile" trips and help city government provide new transport services
The advent of connected and autonomous vehicles (CAV) has the potential to cause major and disruptive changes to cities worldwide, a report launched by Siemens indicates. The report "Cities in the Driving Seat" stresses the need for cities to plan early and tackle the issue in a wider context of mobility transformations. Launched today at the World Cities Summit in Singapore the study explores the interdependencies between urban development, public transportation policies, power supply, pollution and the increasing share of CAV in city traffic. Lack of mid-term planning and delayed investments in infrastructure could create negative social, economic and environmental effects, the authors from Siemens' Global Center of Competence Cities argue.