Siemens plans overhaul to boost growth as profit misses estimate

Siemens AG plans to streamline operations in a bid to boost profitability and navigate large-scale technology disruptions in many of the industries served by Europe’s largest engineering company.

Photo: Siemens

The Munich-based company will shrink the number of operating divisions to three from five, covering power, city infrastructure and digitization, according to a statement. The plans, set to be completed by March next year, will help boost revenue growth and the return on sales of Siemens’ industrial business by 2 percentage points in the medium-term, it said.

The overhaul was outlined at the same time as third-quarter earnings, which showed so-called industrial business profit rose 2 percent to EUR 2.21 billion (USD 2.6 billion), missing the 2.27 billion average estimate of analysts surveyed by Bloomberg. Siemens retained its full-year outlook.

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