SIEMENS TO SPIN OFF POWER AND RENEWABLE ENERGY BUSINESSES
After having spun off its healthcare unit Healthineers, the German multinational conglomerate Siemens will give up its majority stake in its lucrative Gas and Power division comprising its conventional power generation, power transmission, oil and gas, and related services businesses and transfer its current majority 59% stake in Siemens Gamesa Renewable Energy (SGRE) to the new business.
The company’s supervisory board announced the spinoff on May 7 as part of its Vision 2020+ strategy concept. The board said the move would help Germany-based Siemens meet medium-term growth and profit targets by clearly focusing its portfolio on dynamic growth markets and efficiency gains. During the first quarter of 2019, the company’s orders grew 6%, to €23.6 billion, and revenue rose 4%, to €20.9 billion, for a book-to-bill ratio of 1.13 and record high order backlog of €142 billion
The company’s stock price has risen about 5% this year.
Siemens’ Gas and Power, which looks after conventional power generation and transmission, will be given complete independence and prepared for an initial public offering.
Siemens & Halske was founded by Werner von Siemens and Johann Georg Halske on 12 October 1847. Based on the telegraph, their invention used a needle to point to the sequence of letters, instead of using Morse code. In 1867, Siemens completed the monumental Indo-European telegraph line stretching over 11,000 km from London to Calcutta. In 1881, a Siemens AC Alternator driven by a watermill was used to power the world’s first electric street lighting in the town of Godalming, United Kingdom. The company continued to grow and diversified into electric trains and light bulbs. In 1887, it opened its first office in Japan.
(Source: Siemens/NBusiness/The Business Times)