Siemens provides cautiously optimistic view for 2014 I&C margins
"We expect that all sectors will be in their respective margin corridors in fiscal 2014, with Infrastructure & Cities reaching the low end of its target range," Siemens (SI +0.9%) says.
That's a welcome piece of good news for investors, as the I&C division posted EBITDA margins that were woefully below the target range in 2013.
If new CEO Joe Kaeser can make good on the forecast, it may help dispel the notion that the company would be better off dismantling the I&C division and either selling the train unit or finding a partner for it.
Siemens' (SI -0.1%) CEO Joe Kaeser — who took the reins from Peter Loescher in late July — is set to shake up the company's corporate structure, WSJ says, calling the revamp Kaeser's "latest move to differentiate himself from his predecessor."
A new management level will be created to "combine strategy, investor relations and mergers and acquisitions," and Kaeser will devolve country-level power to national executives, in a move away from Loescher's "cluster structure."
Siemens (SI -2.1%) is reportedly in advanced negotiations to sell its water-technologies operations to AEA Investors for $800M after the New York private-equity firm beat out American Industrial Partners in the final round of bidding.
Siemens said last year that it intended to sell the unit as part of its plan to focus on its most profitable assets.
The conglomerate is also in advanced discussions to sell its postal automation and baggage-handling division unit to P-E firm Triton.
In addition, Siemens has received bids from ABB (ABB) and Schneider (SBGSF.PK), among other suitors, for its wiring accessories activities. The offers value the unit's equity and debt at €150-200M.
Siemens' (SI) shares are -1.2% in Frankfurt after the company yesterday said it would axe 15,000 jobs over its two-year €6.3B restructuring and cost-savings program.
The conglomerate had reportedly initially planned to cut 8,000 jobs.
Siemens has already eliminated half the positions and intends to slash the other half during the next fiscal year, which starts tomorrow. The company is negotiating with unions over those staff reductions, which are expected to include early retirements.
The truth is, U.S. coal generation already was in decline not because of climate regulations, but because of good ol' free-market capitalism; the boom in natural gas production has dramatically increased supplies, sent prices plummeting and prompted a shift away from coal.
Among potential long-term winners: U.S. nat gas drillers such as CHK and XOM, drilling services firms such as HAL and BHI, pipeline companies such as SE and KMI, makers of gas-fired turbines such as GE and SI, power generators such as NRG and CPN if electricity prices rise.
Likely losers: Coal appears headed for a decline, and companies with large Appalachian operations such as JRCC and ANR could suffer most as more coal comes from cheaper-to-access deposits in the Illinois Basin and Wyoming; big industrial companies, which have used low U.S. power prices as a competitive advantage, are concerned.
Siemens (SI) is voluntarily recalling MicroScan Synergies plus Negative and rapID/S plus Negative panels shipped from June 2011 through August 2013.
After an investigation, the company discovered a defect which "could potentially lead to misclassification of a resistant or partially resistant strain of gram negative bacteria which may result in treatment with an inappropriate antibiotic or a delay in initiating appropriate therapy."
Josef Ackermann is resigning from the board of a major company for the second time in two week, with the former Deutsche Bank CEO set to leave his position as the second deputy chairman of Siemens' (SI) advisory board.
Ackermann's departure comes after he quit as Chairman of Zurich Insurance following the suicide of the company's CFO.
However, Ackermann intends to keep his other board seats, which include Shell, Investor AB and P-E firm EQT.
Ackerman clashed with fellow Siemens directors in June over the immediate removal of former CEO Peter Loescher, which Ackerman opposed.
Power company Longview files for bankruptcy, blames Siemens
Longview Power files for Chapter 11 bankruptcy while blaming a unit of Siemens (SI) for glitches at its 700 MW West Virginia power plant that left it unable to pay its debts.
The company blames its bankruptcy primarily on what it considers failures by the contractors which built the plant, delaying its opening by nine months and limiting the plant's capacity; Siemens Energy led a team that also included units of Foster Wheeler (FWLT) and Norway's Kvaerner (KVAEF.OB).
Energy-focused P-E firm First Reserve pumped ~$1B in equity into the $2B project.
Navidea Biopharmaceuticals (NAVB +9%) signs an agreement for Siemens Petnet Solutions (SI) to manufacture Navidea's NAV4694 PET imaging agent, which is in Phase II and Phase III trials for evaluating patients with signs of Alzheimers disease and mild cognitive impairment.
Siemens Petnet Solutions operates the world's largest network of PET (positron emission tomography) radiopharmaceutical drug manufacturing facilities and dispensing nuclear pharmacies. (PR)