“In view of the deepening crises in the world economy, we are satisfied with our results in the second quarter,” commented Siemens CEO Peter Löscher. “We did particularly well compared to our competitors. The Energy and Healthcare Sectors continued their strong run. In the Industry Sector, short-cycle businesses were again clearly weaker. We introduced measures to safeguard profitability early on. We’ve already made a strong impact with the SG&A reduction program. Additional measures, such as our supply chain initiative, have been set in motion. Therefore we go forward with the expectation of exceeding Total Sectors profit of the prior fiscal year.” Peter Löscher, President and Chief Executive Officer of Siemens AG
Siemens AG expects, even in the current global recession, that its Total Sectors profit for fiscal 2009 will exceed the prior-year level of €6.6 billion. In the second quarter, Total Sectors profit rose 43% from the prior-year level, to €1.844 billion, led by broad-based profit growth in the Energy Sector. Total Sectors profit thus totaled €3.876 billion for the first six months. In the second quarter, revenue rose 5% to €18.955 billion, driven by growth in the Energy and Healthcare Sectors. While orders of €20.864 billion came in 11% below the prior-year quarter, the book-to-bill ratio remained above 1. The order backlog of the three Sectors again increased, to €87 billion, and included no material cancellations during the quarter.
From April to November, a unique mobile exhibition will showcase the latest developments in science and technology in Germany. In 12 cars extending over more than 300 meters of track, the Science Express will offer visitors a “hands-on experience of the future.” Siemens is supporting the exhibition as one of three partners from the business community. “For me, sustainability is the most pressing issue of the 21st century,” said Siemens President and CEO Peter Löscher. “It’s also a key focus of the Science Express. That’s why we’re very pleased to support this exciting journey into the world of tomorrow.” To highlight future-oriented research topics and innovations, Siemens is contributing 13 exhibits on issues ranging from energy, the environment and healthcare to mobility and urban life as well as related projects at several of the stops on the train’s itinerary. Sponsored by Germany’s Federal Ministry of Education and Research, the Science Express will be one of the German government’s main activities to honor Science Year 2009 and commemorate the 60th anniversary of the founding of the German Federal Republic.
In Nuremberg the world’s first generator with coils made of high-temperature superconductors (HTS) has been running continuously for half a year without problems. Now, Siemens scientists are presenting the research and development project at the multi-party exhibition stand “SuperconductingCity” at the Hannover Trade Fair. In the course of testing, the researchers from Siemens Corporate Technology, Marine Solutions and Large Drives used a transformer to synchronize the generator to the 20-kilovolt network of the Siemens site in Nuremberg. It supports the network there as a phase shifter by compensating for the reactive-power demand of other network users. One initial market for the generator is the field of offshore applications and marine vessels. Siemens researchers are currently also building an HTS propeller motor for this application.
Siemens has sold its residential real estate holdings to a consortium comprising Wohnbau GmbH (Bonn, Germany), the GBW Gruppe (Munich, Germany) and the Volkswohnung GmbH (Karlsruhe, Germany). In the sale, the interests of all tenants were amply taken into account through rights to determine occupancy and protections against unwarranted eviction. There are also limits on rent increases and resale. The parties have agreed not to reveal the purchase price. The transaction is subject to approval by the antitrust authority.
To foster variety within its management more intensively, Siemens has made diversity a key component of its company strategy. “Our international focus is one of our major strengths. We have a huge talent pool all around the world and intend to rigorously develop this competitive advantage,” said Siemens President and CEO Peter Löscher. To find the best candidate for each position, the company will focus particularly on the worldwide identification and fostering of top performers. International networks will increase these talents’ visibility across national borders. “By 2011, we’ll have significantly increased diversity within our management team across the world,” said Jill Lee, Siemens’ Chief Diversity Officer. In addition, specially appointed diversity ambassadors will anchor this approach more strongly in the company culture.
A city like Munich can cut its CO2 emissions by up to 90 percent by mid-century without impairing the quality of life for its inhabitants. This is the main finding of a new study entitled “Sustainable Urban Infrastructure: Munich – Paths toward a Carbon-Free Future.” Commissioned by Siemens, the Wuppertal Institute for Climate, Environment and Energy examined how a modern metropolis like the Bavarian capital can drastically reduce the amount of CO2 it emits. Using a specific model urban district, the analysis concretely demonstrates how the transformation to a virtually carbon-free metropolis can be accomplished in terms of infrastructure and technology. Key levers for cutting CO2 emissions are high-efficiency energy applications, in particular in buildings; infrastructure modifications in the areas of heating, electricity and transportation; and a transition to renewable and low-carbon energy sources wherever possible.
Siemens and the Russian State Atomic Energy Corporation Rosatom today signed a Memorandum of Understanding on the creation of a joint venture in the field of nuclear energy. The joint venture plans to push ahead with further development of Russian pressurized water reactor (VVER) technology. It also intends to handle marketing and sales, and the construction of new nuclear power plants as well as modernization and upgrades of existing plants. The joint venture may take up business opportunities along the entire nuclear conversion chain from fuel fabrication to decommissioning of nuclear power plants. In a next step, the parties will negotiate the terms and conditions of the cooperation, with Rosatom holding the majority stake of 50 percent plus one share in the joint venture. The two parties would complement each other well. Rosatom is the world’s only company covering the whole nuclear value-added chain including the operation of nuclear power plants. Siemens has accumulated comprehensive know-how in the conventional island of nuclear power plants and experience in project management for the construction of large installations.
Siemens is one of the first companies in Germany to reach a framework agreement with its Central Works Council on uniform provisions in the event of reductions in working hours. Regardless of the extent to which reduced working hours may be implemented, Siemens guarantees that all affected employees in Germany will receive at least 85 percent of their most recent net income. “The rules relating to reduced working hours in Germany have now been clearly defined. We’re taking a responsible approach to the matter. Working-hour cutbacks are a key measure which enables us to retain employees even in difficult times,” stated Peter Löscher, President and CEO of Siemens AG. Lothar Adler, Chairman of Siemens’ Central Works Council, noted, “We’re dealing with one another as partners. With this agreement, Siemens is exceeding the legal and most of the collectively-agreed provisions. Salary cuts attributable to reduced working hours will thus remain within limits.”