Changing Focus

Goodbye Consumer, Hello Energy

Kaeser and Davis2 dpa
Joe Kaeser will be relying more and more on his new energy division head, Lisa Davis.
  • Why it matters

    Why it matters

    Joe Kaeser is facing some pressure to ensure a quicker turnaround at Siemens amid stiff competition.

  • Facts


    • Siemens’ fiscal full year profit rose 25 percent to €5.5 billion ($6.9 billion) due to lower write-offs than the previous year.
    • A 2014 operating profit margin of 8.1 percent at Siemens’ energy business is below the industry’s benchmark of 10 to 15 percent, Siemens said.
    • For the energy operations, Siemens warned there was pressure on sales growth and profits due to high competitiveness.
  • Audio


  • Pdf

Joe Kaeser can breathe a sigh of relief – at least for now.

The Siemens chief executive on Thursday announced solid results for the German conglomerate and raised profit expectations. Europe’s largest engineering company also said it will sell its hearing aid business, which will bring in extra cash of more than €2 billion, or $2.5 billion, in the coming quarters.

The move confirms that Siemens is progressing in its transition towards the lucrative energy market and away from its consumer goods business. The higher profit figures, which were in line with analysts’ expectations, will also buy time for Mr. Kaeser to continue his restructuring plans for the company, and to improve the prospects for its struggling energy division.

“Siemens has said it wants to exit the end-consumer market, and the sale is in line with this strategy,” Ulrich Trabert, analyst at Metzler Bank in Frankfurt, said about the sale of the hearing aid business.

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.