Siemens: shares drop after strategic plan
(CercleFinance.com) - Siemens vowed to boost revenue growth and margins through a new strategic structure on Thursday, although its shares failed to react positively to this news.
The German industrial giant announced plans to reorganise itself into a simplified and leaner company, separating its three "operating" units (gas and power, smart infrastructure and digital industries) from its "strategic" companies (Siemens Healthineers, Siemens Gamesa and the planned Siemens Alstom).
Siemens said this "more entrepreneurial" approach would result in accelerated growth, with the group raising targets for revenue and margin.
The company said basic EPS is expected to grow faster than revenue over the medium term.
For the third quarter to end-June, basic EPS was 1.36 euro, compared to 1.67 euro in the third quarter of the previous fiscal year.
On a nominal basis, orders climbed 16% to 22.8 billion euros, driven by a higher volume from large orders, while revenue fell by 4% to 20.5 billion dollars due to currency translation effects.
Also, Siemens said it would acquire mendix, a leader in low-code application development, for 600 million euros.
In spite of this, Siemens shares are currently down 3.8% in early trading today- the worst performing stock on Frankfurt's DAX index.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The German industrial giant announced plans to reorganise itself into a simplified and leaner company, separating its three "operating" units (gas and power, smart infrastructure and digital industries) from its "strategic" companies (Siemens Healthineers, Siemens Gamesa and the planned Siemens Alstom).
Siemens said this "more entrepreneurial" approach would result in accelerated growth, with the group raising targets for revenue and margin.
The company said basic EPS is expected to grow faster than revenue over the medium term.
For the third quarter to end-June, basic EPS was 1.36 euro, compared to 1.67 euro in the third quarter of the previous fiscal year.
On a nominal basis, orders climbed 16% to 22.8 billion euros, driven by a higher volume from large orders, while revenue fell by 4% to 20.5 billion dollars due to currency translation effects.
Also, Siemens said it would acquire mendix, a leader in low-code application development, for 600 million euros.
In spite of this, Siemens shares are currently down 3.8% in early trading today- the worst performing stock on Frankfurt's DAX index.
Copyright (c) 2018 CercleFinance.com. All rights reserved.