This year, Siemens researchers won the German Future Prize (Deutscher Zukunftspreis) for the fourth time – more than any other company. This prize is awarded by the German President and is Germany's highest honor for technology and innovation. A research team led by Dr. Torsten Niederdränk in collaboration with the University of Oldenburg developed a so-called binaural hearing system that enables hearing aids in both ears to communicate. This represents an important evolutionary step toward spatial hearing and an improvement in the quality of life of those with hearing loss. German President Joachim Gauck awarded the German Future Prize in Berlin on the evening of November 28, 2012. The €250,000 prize was previously awarded to Siemens employees in 2004, 2005, and 2007 for developments in biochips, piezo technology, and light-emitting diodes.
Siemens has entered into an agreement to acquire Invensys Rail, the rail automation business of Invensys for approximately €2.2 billion (£1.742 billion). At the same time, the company plans to divest its baggage handling, postal and parcel sorting activities. Both planned transactions are part of the recently launched "Siemens 2014" company program, which amongst others, is aimed at strengthening the company's core activities. With revenues of approximately £800 million, Invensys Rail is a leading software based rail signaling and control company. The acquisition will expand Siemens' presence in the growing global rail automation market. "Today's moves are important measures to focus our core activities. We are exiting a non-core business with limited synergy potential while strengthening a resilient and high return business by combining two organizations with similar cultures and attractive synergy potential. The combined business will ensure profitable growth opportunities worldwide for the Siemens Infrastructure & Cities Sector," said Roland Busch, CEO of Siemens Infrastructure & Cities. The transaction is subject to Invensys shareholder approval and regulatory clearances.
Siemens AG reached a settlement with its former board member Dr. Thomas Ganswindt. The settlement is subject to the approval of the annual shareholders' meeting of Siemens AG on January 23, 2013. The settlement will terminate the pending litigation proceeding between Siemens AG and Dr. Thomas Ganswindt filed with the District Court of Munich. The details on the content of the settlement will be announced with the Notice of Annual Shareholders' Meeting in December 2012.
During the 14th round of the Russian-German intergovernmental consultations in the presence of Mr. Vladimir Putin, President of Russia, and Ms. Angela Merkel, Chancellor of the Federal Republic of Germany, Siemens signed a number of agreements with Russian partners. "Russia is a very important market for Siemens. With a comprehensive portfolio of innovative and ecofriendly technologies, we're a reliable partner for the modernization of the country's infrastructure," said Peter Löscher, President and CEO of Siemens AG.
In fiscal 2012, Siemens achieved a seven percent gain in revenue and a strong profit. Income from continuing operations was €5.2 billion and thus in line with expectations. New orders declined ten percent year-over-year. "A strong fourth quarter enabled us to fulfill our expectations for fiscal 2012 and achieve one of our best years ever," said Peter Löscher, President and CEO of Siemens AG. "Even so, we didn't fully succeed in significantly boosting our performance vis-à-vis competitors, as we did in recent years. To get back to reaching our own goals, we've launched 'Siemens 2014,' a company-wide program aimed at raising our Total Sectors profit margin to at least 12 percent. We know what we have to do – and we're doing it."
We released our financial figures for the fourth quarter and fiscal year 2012 on November 08, 2012. The press conference was broadcast live on the internet.
Siemens is targeting a Total Sectors profit margin of at least 12 percent and, among other goals, productivity gains of €6 billion over the coming two years with its recently launched "Siemens 2014" company program. The first measures have already been introduced and are being rigorously implemented. One of the program's five levers aims at strengthening the company's core activities. As part of this strategy, Siemens is acquiring LMS International for around €680 million in the Industry Sector and will also restructure its water technology business. In the future, the water business will focus on Siemens' core competencies in automation and drives, while activities involved in processing and treating water and wastewater will be sold.
"A strong fourth quarter enabled us to fulfill our expectations for fiscal 2012 and achieve one of our best years ever. Even so, we didn't fully succeed in significantly boosting our performance vis-à-vis competitors, as we did in recent years. To get back to reaching our own goals, we've launched "Siemens 2014," a company-wide program aimed at raising our Total Sectors profit margin to at least 12 percent. We know what we have to do – and we're doing it."