- Carve-out as separate company under the Siemens umbrella to take place in the coming months
- Siemens to provide company with solid financial basis
- Michael Reichle from Infrastructure & Cities Sector designated CEO
Siemens no longer intends to sell its baggage handling and parcel and postal sorting activities. The activities are to be further operated as a separate business under the Siemens umbrella. "I've made it clear again and again that we have to get our businesses in order again ourselves. We'll do this in the case of postal automation and airport logistics. We'll set up the company so it can operate better and more flexibly in its medium-sized competitive environment. And we'll create the required prerequisites for this: suitable financial resources, appropriate management structures and an appropriate timeframe," said Siemens President and CEO Joe Kaeser.
- Denice Kronau to leave the company on May 31, 2014
- Diversity to be embedded as departmental function
Effective July 1, 2014, Janina Kugel will assume the position of Chief Diversity Officer (CDO) for Siemens AG in addition to her current responsibilities as Head of Personnel Strategy and Executive Development.
- First Siemens "Supplier Innovation Day"
- Hand-picked suppliers showcase their latest developments in Fürth
- Joint work on particularly promising ideas
Siemens is strengthening its collaborative efforts with its most innovative suppliers. The "Supplier Innovation Day" on May 26, 2014 in Fürth will see some 200 international researchers, developers and procurement experts from Siemens get together with specially selected suppliers to exchange views and ideas. From a total of 120 preliminary suggestions submitted, 21 suppliers were selected to appear at the event, where they will now present their latest developments.
- Second-quarter revenue was 2% lower year-over-year. On an organic basis, excluding currency translation and portfolio effects, revenue rose 1%.
- Orders declined 13% compared to the prior-year period which included a substantially higher volume from large orders. On an organic basis, orders were 10% lower year-over-year. The book-to-bill ratio was 1.06 for the quarter, and Siemens' order backlog reached a new high at €103 billion.
- Total Sectors profit rose 16%, to €1.566 billion, highlighted by a strong profit increase in Infrastructure & Cities, and income from continuing operations climbed 19%.
- Net income for the second quarter rose 12% year-over-year, to €1.153 billion, and basic earnings per share (EPS) increased to €1.33.
- Free cash flow from continuing operations was €1.390 billion, up slightly from €1.360 billion in the second quarter a year earlier.
"The second quarter showed that we still have a lot to do to improve our operating performance. Nevertheless we are on course to reach our targets for the fiscal year."
- Net income climbs 12 percent to €1.2 billion
- Revenue rises one percent, new orders decline ten percent (on comparable basis)
- Book-to-bill at 1.06 – record order backlog of €103 billion
- Order and revenue growth weakened by strong euro
Siemens looks back on a mixed performance in the second quarter of fiscal 2014. Profit in the second quarter was considerably higher than in the comparable prior-year period. A strong euro took four percentage points from order development and revenue growth. On a comparable basis, excluding currency translation and portfolio effects, revenue rose one percent year-over-year, and orders declined ten percent. The ratio of new orders to revenue (book-to-bill) was 1.06, and Siemens' order backlog reached a new high at €103 billion. With the publication of the quarterly figures, Siemens confirmed its outlook for fiscal 2014. "The second quarter showed that we still have a lot to do to improve our operating performance. Nevertheless we are on course to reach our targets for the fiscal year," said Siemens President and CEO Joe Kaeser.
- Strong partners with complementing technological competencies found joint venture
- Existing regional organizations ideally complement one another
- Structures tailored to global market requirements and the international competitive environment
Siemens and Mitsubishi Heavy Industries (MHI) want to cooperate in the field of metallurgical industry and are forming a globally operating complete provider for plants, products and services for the iron, steel and aluminum industry. Responding to the challenging market environment and high price pressure, two strong partners are bundling their individual strengths and establishing a powerful and globally well positioned joint venture. An agreement to this effect has just been signed. According to the agreement, MHI will hold a 51-percent and Siemens a 49-percent stake in the joint venture. Subject to approval of the relevant authorities, the joint venture will start operations in January 2015.
The strategic realignment will enable Siemens to focus on growth fields in electrification, automation and digitalization. The organization will be streamlined. Employee participation in the company's success will intensify.
- Focus on growth fields along the electrification, automation and digitalization
- Acquisition of Rolls-Royce gas turbine and compressor business, joint venture for Metals Technologies and public listing of audiology set the course
- New organization with flatter structures – Sector level eliminated
- Greater employee participation in company success – Siemens to make up to €400 million available annually depending on company performance
- Launch of share buyback of up to €4 billion upcoming
In the future, Siemens AG will position itself along the electrification, automation and digitalization. Along these value chains Siemens has identified several growth fields in which it sees its greatest long-term potential. The company is orienting its resource allocation toward these growth fields and has announced concrete measures in this direction. The measures include the purchase of the major part of Rolls-Royce’s energy business and the contribution of Siemens’ Metals Technologies into a joint venture. A public listing of the audiology business will also be prepared. In addition, Siemens is making its organization flatter and more customer-oriented. This is Siemens – Vision 2020.
- Siemens completes portfolio with aero-derivative gas turbines for growth in the oil and gas and decentralized power generation sectors
- Purchase price for the acquired business is £785 million or about €950 million
- Transaction expected to close before the end of December 2014
Siemens is acquiring the Rolls-Royce Energy aero-derivative gas turbine and compressor business and thereby strengthening its position in the growing oil and gas industry as well as in the field of decentralized power generation. The purchase price is £785 million or about €950 million. The transaction is expected to close before the end of December 2014, subject to regulatory approvals.
As part of its realignment, Siemens AG has named its future management team. The Supervisory Board of Siemens AG has appointed Lisa Davis – who is currently Executive Vice President Strategy, Portfolio and Alternative Energies at Royal Dutch Shell – to the Managing Board, effective August 1, 2014. Lisa Davis will be responsible on the Managing Board for the Power and Gas Division, the Wind Power and Renewables Division, the Power Generation Services Division, the Region North America and the Region South America. She will be based in the United States. Michael Süß is resigning from the Managing Board with immediate effect, for personal reasons and by mutual consent. He will continue to be available to Siemens' President and CEO in a consultative capacity. Until Lisa Davis assumes her position, the Energy Sector will be headed by Randy Zwirn on an acting basis and represented on the Managing Board by Klaus Helmrich.