Siemens plans carveout of Gas and Power unit
Siemens said in a statement that it intends to meet its medium-term growth and profit targets by "clearly focusing its portfolio on dynamic growth markets and efficiency gains. To this end, the Supervisory Board of Siemens AG today unanimously approved the next steps in the company's Vision 2020+ strategy concept, including the spinoff of Siemens' Gas and Power." Siemens' Gas and Power - comprising the company's oil and gas, conventional power generation, power transmission and related services businesses - is to be given complete independence and entrepreneurial freedom through a carveout and a subsequent public listing. In addition, Siemens AG plans to contribute its majority stake in the renewable energies company SGRE - currently 59 percent - to GP. Plans call for the stock exchange listing to take place by September 2020. In addition to strengthening its portfolio structures, Siemens will significantly improve its cost effectiveness across all areas of the company. The goal is to strengthen competitiveness and productivity and thus increase both the annual revenue growth rate and the profit margin of the company's Industrial Business by two percentage points over the medium term. Basic earnings per share are to grow faster than revenue over the medium term. Over the long term, the profit margin of the industrial core business is to reach 14 to 18 percent. "We have a variety of opportunities to become more profitable. Significant productivity gains can be achieved through leaner administration alone. The 79 factories that SI maintains worldwide are another factor. We'll reduce costs over the next three years by bundling capacities and through partnerships," said the company.To achieve this goal, SI plans to reduce jobs by a total of 3,000 worldwide. This measure will generate EURO$300 million in restructuring charges. All in all, SI expects a net increase of about 3,000 jobs by 2023.