Siemens Energy Targets Profitability Increase in Post-Spinoff Strategy
September 01 2020 - 7:04AM
Dow Jones News
By Giulia Petroni
Siemens Energy laid out its post-spinoff strategy on Tuesday,
saying it aims to increase profitability and focus on portfolio
adjustments while shifting toward sustainability.
The energy company, which is due to debut on the stock market
this month, said management aims to achieve an adjusted earnings
before interest, taxes and amortization margin before special items
of between 6.5% and 8.5% for fiscal 2023.
Siemens Energy's owner Siemens AG is spinning off 55% of the
energy business, which includes its gas and power operations as
well as its 67% stake in wind-turbine maker Siemens Gamesa
Renewable Energy SA. Siemens will retain a 35.1% stake in Siemens
Energy.
In the first phase of its strategy, the company said it will
focus on the gas and power segment, in order to have "a leaner cost
structure, optimized logistics, centralized purchasing and the
reduction of non-conformance costs."
Project selection will also be one of the main focuses, as the
company is currently evaluating initiatives that target more than
300 million euros ($357.7 million) of annual gross global cost
savings. These add up to the already-announced EUR1 billion saving
target until fiscal 2023, compared to fiscal 2018 levels.
In fiscal 2019, Siemens Energy's revenue amounted to EUR28.8
billion.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
September 01, 2020 06:49 ET (10:49 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Siemens (TG:SIE)
Historical Stock Chart
From Aug 2024 to Sep 2024
Siemens (TG:SIE)
Historical Stock Chart
From Sep 2023 to Sep 2024