Siemens targets 2014 growth in "challenging times"Peter Garnry
Siemens reports a 3 percent rise in fourth quarter revenue, but net profit fell 9 percent. It was impacted by EUR1.3 billion in charges related to 15,000 job cuts.
Siemens is halfway through a two-year EUR6.3 billion cost-cutting programme designed to regain market share lost to rivals such as General Electric and ABB.
On Wednesday the company announced the sale of part of its water treatment, it’s part of a strategy to sell low-margin assets.
The German engineering group says it expects growth to pick up in 2014 and earnings per share to rise by at least 15 percent – that’s more than double the 7.2 percent growth rate in 2013.
Joe Kaeser, who took over as CEO on August 1, following a boardroom battle hasn’t outlined his plans for the company, but has made it clear his focus is on profitability and says he doesn’t “think that we (Siemens) need another cost-cutting programme”
It also announced plans for a share buyback of up to EUR4 billion within the next two years. But Saxo Bank’s Peter Garnry says he doesn’t think this is necessarily the right move for the company.