We released our figures for the second quarter and first half of fiscal 2009 on April 29, 2009 in Berlin.
Siemens has launched a new supply chain management initiative to significantly improve the efficiency of its cooperation with suppliers. “We’ve been forcefully driving the company’s transformation in order to make Siemens fit for the future. Customers are already seeing the benefits. Now, we intend to improve long-term cooperation with our suppliers,” said Peter Löscher, Siemens President and CEO. As Barbara Kux, head of Supply Chain Management and member of Siemens’ Managing Board, explained, “The internal targets set by our supply chain management initiative are ambitious. But our approach is different from that of our competitors. Our purchasing managers will be measured against the savings targets – this doesn’t have to take place in public. In price poker, you don’t want anyone to see your cards.”
Siemens intends to rigorously expand its world-leading position as a supplier of ecofriendly products and solutions. “The move to a green economy is a huge opportunity for us,” said Siemens President and CEO Peter Löscher at the company’s Semiannual Press Conference in Berlin. In his speech, Löscher referred to the statements of German President Horst Köhler who, in his fourth Berlin address, called for an “environmental, industrial revolution.” “Technological revolutions have always been our specialty. That’s why no one is better equipped to lead the green revolution than Siemens. As a green infrastructure giant, the company is a reliable, long-term partner worldwide due to its experience, technological expertise and solid financial position,” added Löscher. The technologies in Siemens’ Environmental Portfolio already generate sales of roughly €19 billion, accounting for about one-quarter of the company’s total revenue.
“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.