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.