- Recognized with top marks in nine categories in the Dow Jones Sustainability Index
- Company scores 90 out of 100 points
Siemens has again been recognized as one of the most sustainable companies in its industry. Each year, the investment company RobecoSAM compiles the Dow Jones Sustainability Index (DJSI) – the world's most renowned ranking of its kind – for Dow Jones, a provider of financial market indices. In this year's DJSI, Siemens ranks among the leaders by taking second place in the Industrial Conglomerates area, which comprises 43 companies, including General Electric, 3M, Philips and Toshiba.
- Offer addressed to institutional investors in the bonds with warrants issued in February 2012 with a volume of US$3 billion
- High complexity of warrants since Osram spin-off can be eliminated.
Siemens is inviting institutional investors in the bonds with warrants issued in February 2012 to participate in an exchange offer. Since the effective date of the Osram spin-off in July 2013, the warrants entitle their holders to receive, upon exercise, Siemens shares and additionally shares of Osram Licht AG. As a result, the warrants are now more complex for both investors as well as Siemens. The exchange offer aims to allow the involved parties to again furnish the warrants ‒ in accordance with their terms and conditions for the rest of their lifetime ‒ with subscription rights exclusively relating to Siemens shares.
We released our third quarter results for fiscal 2015 on July 30, 2015. The combined press and analyst conference call was broadcast live.
Jürgen Brandes (54) has been appointed CEO of Siemens’ Process Industries and Drives Division, effective October 1, 2015. He will succeed Peter Herweck (48), who is leaving the company at the end of the fiscal year. Brandes has been at Siemens for 25 years and is currently CEO of the company’s Mobility Management Business Unit. He previously held a variety of positions in Siemens’ automation and drives technology business both in and outside Germany.
- Third-quarter orders up 4% year-over-year, at €19.9 billion, including a €1.6 billion order in Mobility; excluding currency translation and portfolio effects, orders down 5%
- Revenue 8% higher at €18.8 billion, for a book-to-bill ratio of 1.05; revenue 3% lower on a comparable basis
- Industrial Business profit level, at €1.8 billion; strong improvements in Energy Management and Healthcare largely offset by a decline in Power and Gas
- Net income at €1.4 billion; basic earnings per share (EPS) increased to €1.65, up from €1.62 in Q3 FY 2014
- At the end of the quarter, the Power and Gas Division closed its acquisition of Dresser-Rand, substantially expanding its offerings for the oil and gas industry and distributed power generation
"Overall our businesses delivered solid underlying profitability despite a softening market environment. We expect to maintain our momentum with a strong closing quarter for fiscal 2015."
- Acquisition of Dresser-Rand to close for US$7.8 billion by end of June
- Dresser-Rand shares to be delisted
- Vincent Volpe to head the new Dresser-Rand business at Siemens through transition
The EU Commission has unconditionally approved Siemens' acquisition of Dresser-Rand. All regulatory approvals required to complete the transaction have thus now been obtained. Siemens plans to close the transaction by the end of June 2015. Siemens will pay all Dresser-Rand shareholders US$85.20 per share. The purchase price comprises the offer of US$83 per share plus a time-dependent ticking fee totaling US$2.20 per share for the months of March to and including June 2015. The overall consideration for acquiring all outstanding Dresser-Rand shares including the assumption of outstanding financial debt of US$1.2 billion is about US$7.8 billion.
- US$7.75 billion with maturities of 3, 5, 7, 10 and 30 years
- Demand two-and-a-half times the planned issue volume
- Broad investor base, mainly in the U.S.
- Rating agencies continue to give Siemens high credit rating
Siemens has successfully placed its largest bond issuance to date. It was the company's second bond placement on the U.S. capital market, with the first having been nine years ago. In a transaction that ended yesterday, Siemens issued bonds with a total value of US$7.75 billion and maturities of three, five, seven, ten and 30 years. Due to the very high demand, the company obtained very favorable interest-rate conditions for all maturities. Investor demand was two-and-a-half times the originally planned issue volume of US$7 billion. At the time of price fixing, the interest rate premium over comparable U.S. government bonds averaged 14.5 basis points below the initial indication at the beginning of the issuance.
- The Enel power company and Siemens build a smart grid
- Siemens makes Libeskind sculptures possible
During Expo 2015 in Milan, Italy, Siemens is serving as the strategic partner to Enel for delivering the intelligent grid technology that supplies the world's fair with electricity. For Italy's largest power company, Siemens developed the energy management capabilities for this smart grid. Siemens software makes it possible to monitor and optimize power consumption for the entire Expo grounds from a computer screen at the control center – or from anywhere via smartphone. This also includes the lighting and air conditioning at the national pavilions. In addition, Siemens is enhancing the world's fair grounds with international art: Four monumental sculptures commissioned by Siemens and designed by Daniel Libeskind Studio were installed at the Piazza Italia, a central promenade.
- Second-quarter orders up 16%, to €20.8 billion, including large orders in the rail business; on a comparable basis, excluding currency translation and portfolio effects, orders up 7%
- Revenue 8% higher at €18.0 billion, for a book-to-bill ratio of 1.15; revenue flat on a comparable basis
- Industrial Business profit 5% lower, at €1.7 billion, due largely to Power and Gas as expected
- Net income of €3.9 billion, including €1.6 billion, €1.4 billion and €0.2 billion, respectively, on the sale of the hearing aid business, Siemens' stake in BSH Bosch und Siemens Hausgeräte GmbH (BSH) and the hospital information business; resulting in basic earnings per share (EPS) of €4.70
"For business volume, we performed well in our markets. The profitability of our Industrial Business shows that we must still improve some businesses."
- Siemens on track to reach targets for fiscal 2015 in an increasingly difficult environment
- Agreement reached with employee representatives in Germany regarding measures to sustainably reduce overhead cost base by €1 billion by 2016
- Power and Gas Division seeks long-term improvement in profitability within a consolidating environment
- Restructuring of underperforming businesses initiated
- Structural reorganization of company largely completed
- Focus on growth, innovation and continuous profitability improvement
One year after presenting its Vision 2020, Siemens is on track with the implementation of its concept for the company's strategic realignment. As announced, Siemens has informed its Supervisory Board and the relevant committee of employee representatives regarding the next steps planned in order to improve the company's profitability. These steps include measures to improve profitability at the Power and Gas Division's power generation business as well as a bundle of additional measures for restructuring chronically low-profit businesses. "With the initiation of these measures, the company's structural reorganization has been completed for the most part," said Joe Kaeser, President and CEO of Siemens AG.