Siemens’ Healthcare Sector has done extremely well in the crisis, particularly compared to its competitors. “We have the best product, service and solutions portfolio in the healthcare market and an unparalleled understanding of the needs of our customers. This as well as our rigorous cost management and market-oriented innovations have made us a leading company in the healthcare industry,” said Hermann Requardt, CEO of Siemens’ Healthcare Sector at the Siemens Healthcare Capital Market Day in London. “We are now in an excellent position to reap above-average profits from the future worldwide growth of healthcare markets,” added Requardt. The Healthcare Sector’s program to reduce sales and administrative costs is right on schedule. “We’ve made major progress in reducing complexity and costs,” said Michael Sen, CFO of the Healthcare Sector. The focus will now be on increasing capital efficiency and on higher cash generation. Siemens Healthcare is expecting additional synergies in its laboratory diagnostics business.
Siemens AG has honored its best suppliers worldwide in fiscal 2009. The German engineering office, BIS Gas Turbine Systems, located in Bremen, Germany, took first place in the overall ranking. Siemens also presented awards in particularly important subcategories to its best suppliers in the areas Innovation and Global Value Sourcing. These awards went to the French-Italian semiconductor producer STMicroelectronics and the U.S. developer of hearing aid components Knowles Electronics Holding Inc., respectively. “In presenting these awards, we want to honor the partners who have helped us reach the market better and faster,” said Barbara Kux, Member of the Managing Board of Siemens AG, at the awards ceremony near Munich, Germany on Thursday.
Siemens AG has been named once again to the prestigious Dow Jones Sustainability World Index (DJSI), capturing the No. 1 spot in the sector Diversified Industrials, which also includes ITT, General Electric and Toshiba. Siemens has expanded the leading position it held last year in the two assessment categories Compliance and Risk Management and this year received the highest points possible in each category. The company has also considerably improved its rankings in the categories Environment and Society. This is the tenth time in a row that Siemens has been honored by Dow Jones analysts for its sustainable activities. This year’s overall result is the best the company has ever achieved. The changes in the DJSI will come into effect on September 21, 2009.
Siemens AG wants to receive orders worth more than €6 billion for intelligent power networks (Smart Grids) over the next five fiscal years: Siemens is already one of the leading international suppliers of Smart Grids and is continuing to strengthen this position. “We are already on the optimal course in the Smart Grids business and will be running at top speed in the future. A new age for power supplies is dawning with Smart Grids,” said Wolfgang Dehen, CEO of the Siemens Energy Sector. Siemens anticipates that orders for Smart Grid technologies will reach nearly €1 billion in the current fiscal year. “The Smart Grid market will see increasingly dynamic growth fueled by climate change and economic stimulus programs. We want to grow twice as fast as the overall market,” added Dehen. The market being addressed by Siemens totals around €30 billion over the coming five years. Siemens is aiming at seven percent annual growth and a market share of over 20 percent in the Smart Grid business.
Siemens is investing $ 15 million in Arava Power Company, the Israeli market leader in developing solar power plants. An agreement was signed at Kibbutz Ketura yesterday, securing Siemens a 40 percent stake in the company. Arava Power develops, builds and operates photovoltaic plants in Israel. “This investment is another consequential step in further strengthening our green and sustainable technologies,” said Peter Löscher, President and CEO of Siemens AG. “Thanks to its intensive sunshine and steadily growing demand for energy, Israel is an ideal location for further developing our solar business.” The equity investment will make it possible to build Israel’s first commercial solar farms – to be located in the region between the Dead Sea and the Red Sea.
Effective 1 October 2009 Siemens IT Solutions and Services will acquire a 60 percent stake in Energy4U GmbH. The aim of the investment is to strengthen the smart grid portfolio for utility companies in the area of smart metering and billing, also known as “meter-to-bill”. Based in Elbtal, in the state of Hesse, Energy4U specializes in SAP implementation of customer information and billing systems for utilities. Founded in the year 2000, Energy4U GmbH has over 90 employees and is one of Germany’s leading SAP service providers in this market segment. Both parties have agreed not to disclose the purchase price. The transaction remains subject to final approval by the German antitrust authorities.
Siemens has confirmed its targets for fiscal 2009 even in the current challenging global economic environment. “Our third-quarter results demonstrate that we are fully on track to achieve our targets for fiscal 2009,” said Siemens’ President and CEO Peter Löscher. In the third quarter, Siemens’ strong order backlog softened the impact of the global recession on the company’s revenue and profit. Revenue declined to approximately €18.3 billion. Excluding currency translation effects and portfolio transactions, revenue was down 4% from the third quarter a year earlier. Total Sectors profit decreased to approximately €1.7 billion. Orders of approximately €17.2 billion in the third quarter were well below the prior-year level. The decline is attributable in part to the high order level posted in the prior year, which included a major order worth roughly €1.4 billion from the Belgian state railway system. Backlog for the Sectors totaled €84.3 billion at the end of the third quarter. “We again did particularly well compared with our most important competitors,” CEO Löscher noted. ”As expected, the macroeconomic environment clearly left its mark on new business. We had already prepared for that ahead of time. We are also carefully considering the challenges ahead. We will continue the rigorous pursuit of our corporate policy focused on sustainability,” Löscher said.
“Our third-quarter results demonstrate that we are fully on track to achieve our targets for fiscal 2009,” commented Siemens CEO Peter Löscher. “We again did particularly well compared with our most important competitors. As expected, the macroeconomic environment clearly left its mark on new business. We had already prepared for that ahead of time. We are also carefully considering the challenges ahead. We will continue the rigorous pursuit of our corporate policy focused on sustainability.” Peter Löscher, President and Chief Executive Officer of Siemens AG