Mitsubishi Heavy Industries (MHI) and Siemens AG today announced that they have joined forces in evaluating a potential proposal for certain assets of the French multinational conglomerate, Alstom in order to strengthen the future position of Alstom, MHI and Siemens.
- 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.
- 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.
- 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.
- 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."
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.
As part of its realignment, Siemens AG is preparing to publicly list its audiology activities in order to give the business an opportunity to better leverage its potential outside the company. Step by step, Siemens' hearing aid activities have succeeded in capturing a strong market position in recent years. Experts predict that by 2020 the market for hearing aids will have grown by an average of four percent per year.