- Sale to EQT with Wallenberg family as anchor investor and to Strüngmann family as co-investor for €2.15 billion plus earn-out component
- Siemens reinvests €200 million in preferred equity
- Transaction closing expected in first quarter of calendar 2015
Siemens is selling Siemens Audiology Solutions to the investment company EQT and Germany's Strüngmann family of entrepreneurs as co-investor for €2.15 billion plus an earn-out component. Due to the very attractive offer made by the two investors, Siemens has decided not to further pursue preparations for the public listing it announced in May. "In the past years Siemens Healthcare has invested significantly in its audiology business. Both EQT with the Wallenberg family as anchor investor and the Strüngmann family have outstanding reputations and extensive experience in the healthcare sector. Not only is the transaction excellent from a financial perspective; we're also convinced that both investors have a clear growth strategy for further developing the hearing aid business over the long term," said Hermann Requardt, CEO of Siemens Healthcare and member of the Managing Board of Siemens AG. Siemens will remain invested in the hearing aid business with preferred equity of €200 million and benefit from future business successes. In addition, Siemens will have a seat on the board of the buyer group. Under the terms of the agreement, the new owners will also be allowed to continue using the Siemens product brand for the hearing aid business over the medium term.
- Fourth-quarter revenue was level year-over-year, and orders rose 2%. The book-to-bill ratio was 1.01 for the quarter, and Siemens' order backlog was €100 billion. On an organic basis, excluding currency translation and portfolio effects, revenue rose 1% and orders were up 2%.
- Total Sectors profit climbed 28%, to €2.195 billion, led by substantial profit improvements in Industry and Infrastructure & Cities, and income from continuing operations climbed 36%.
- Net income for the fourth quarter rose 40% year-over-year, to €1.498 billion, and basic earnings per share (EPS) increased to €1.72.
- Free cash flow from continuing operations was €3.400 billion, significantly above income from continuing operations but below the high level in the fourth quarter a year earlier.
- For fiscal 2014, organic revenue and orders both rose 1% compared to the prior year, and the book-to-bill ratio was 1.09. Basic earnings per share (EPS) from net income increased 25% year-over-year. Siemens proposes a dividend of €3.30 per share.
"We delivered the results we originally promised for fiscal 2014 and made substantial progress in strengthening our portfolio. Vision 2020 gives us clear strategic direction going forward."
- Slight plus for orders and revenue
- Net income at €5.5 billion
- Book-to-bill at 1.09 – Order backlog at €100 billion
Siemens AG reached its goals for the fiscal year ended September 30, 2014, thanks to a solid fourth quarter. Net income was €5.5 billion compared to €4.4 billion for the prior year. Total Sectors profit climbed 26 percent to €7.3 billion, fueled by strong profit improvements at Industry and Infrastructure & Cities. "We delivered the results we originally promised for fiscal 2014 and made substantial progress in strengthening our portfolio. Vision 2020 gives us clear strategic direction going forward," said Joe Kaeser, President and Chief Executive Officer of Siemens AG.
- Company receives its best CDP rating ever
- CDP praises transparency of Siemens' climate protection reporting
- Energy and resource efficiency go hand in hand with climate protection
Siemens' commitment to sustainability has again received public recognition. Following its ranking as the most sustainable company in its industry group in this year's Dow Jones Sustainability Index (DJSI), the company has now also obtained excellent results from the Carbon Disclosure Project (CDP). For the transparency of its reporting on the opportunities and risks of climate change, Siemens received 99 out of 100 possible points in the Carbon Disclosure Leadership Index. In addition, Siemens' efforts to achieve energy efficiency and reduce CO2 emissions enabled the company to reach band A, the highest performance band. As a result, the company is also included in the Carbon Performance Leadership Index. This is Siemens' best rating to date.
The Supervisory Board of Siemens approved the decision of the Managing Board to enter into an agreement with Dresser-Rand (NYSE:DRC), which is listed on the New York Stock Exchange, to acquire all of the issued and outstanding common shares of Dresser-Rand by way of a friendly takeover bid. Siemens’ bid is unanimously supported by Dresser-Rand’s Board of Directors. The offer price is $83 per common share in cash, or a total transaction value of approximately $7.6 billion (approximately €5.8 billion). Siemens expects to close the transaction by summer 2015.
A combined analyst and press conference call with Joe Kaeser, President and CEO, Lisa Davis, Member of the Managing Board, and Ralf P. Thomas, CFO was broadcast live on September 22, 2014.
- Takeover bid for Dresser-Rand has a total transaction value of $7.6 billion
- Acquisition strengthens Siemens’ portfolio for oil & gas industry
- Complementary regional footprint and product portfolio
Siemens executes on its Vision 2020 with a decisive move to strengthen its core. The company has entered into an agreement with Dresser-Rand (NYSE:DRC), which is listed on the New York Stock Exchange, to acquire all of the issued and outstanding common shares of Dresser-Rand by way of a friendly takeover bid. Siemens' bid is unanimously supported by Dresser-Rand's Board of Directors. The offer price is $83 per common share in cash, or a total transaction value of approximately $7.6 billion (approximately €5.8 billion). With its comprehensive portfolio of compressors, steam turbines, gas turbines and engines, Dresser-Rand is a leading supplier for the oil & gas, process, power and other industries in the related energy infrastructure markets worldwide. The acquisition complements Siemens' existing offerings, notably for the global oil & gas industry and for distributed power generation.
- Largest Light Rail Vehicle contract ever awarded in the USA to Siemens
- Order worth USD 648 million
- Option for an additional 85 cars
San Francisco's Municipal Transportation Agency (SFMTA) has awarded Siemens a contract to deliver an initial 175 light rail cars for its Muni transit system at a value of USD 648 million. With an option for an additional 85 cars, this is one of the biggest orders for light rail cars ever placed in the USA. With this contract, Siemens secures its position as the U.S. market leader in this segment. Every third streetcar or light rail car operating in the USA today comes from Siemens. The trains will be built at the Siemens plant in Sacramento, California, and the first cars are set to be delivered at the end of 2016.
- Shell completed ahead of schedule
- Building symbolizes cosmopolitan, innovative and transparent identity
- Removal of soundproofing walls following façade assembly
A milestone has been reached on the way to the completion of Siemens' new company headquarters at Wittelsbacherplatz in Munich, Germany. The company celebrated the building's topping-out with Munich Mayor Dieter Reiter, the head of Munich's Department of Urban Planning Prof. Dr. Elisabeth Merk, construction workers at the site, neighbors and employees. The shell of the new complex, with some 45,000 square meters of above-ground floor space, was completed earlier than expected.