April 23, 2018 / 11:09 AM / a year ago

Siemens CEO says rail business performed well in second quarter

HANNOVER, Germany (Reuters) - Siemens Mobility (SIEGn.DE), which is being merged with Alstom’s (ALSO.PA) rail business, is performing well, the German industrial conglomerate’s chief executive said.

FILE PHOTO: Siemens CEO Joe Kaeser speaks at the annual session of China Development Forum (CDF) 2018 at the Diaoyutai State Guesthouse in Beijing, China March 26, 2018. REUTERS/Jason Lee

“We have an excellent mobility business, you can already see that in the figures of the last but one quarter,” Joe Kaeser told Reuters on the sidelines of the Hannover Messe trade fair on Monday.

“I am not revealing any secrets when I say that I was very happy when I saw the mobility figures for the second quarter,” he added.

Siemens is due to publish second-quarter results on May 9.

Siemens and French rival Alstom SA agreed last September to merge their rail operations, creating a European champion to better withstand the international advance of China’s state-owned CRRC Corp Ltd [601766.SS]

Siemens will own 50 percent plus a few shares of the joint venture, to be called Siemens Alstom, while Alstom will supply Henri Poupart-Lafarge as chief executive, helping to counter criticism that France is giving up control of another national industrial icon.

“We are well on our way and have to work hard to make the merger work. I am not afraid this won’t be a great success,” Kaeser said.

The mobility merger is part of Kaeser’s strategy to simplify Siemens operations by separating the diverse conglomerate into what he has termed “a fleet of ships” which thrive under their own steam.

Under this approach Siemens has already sold off a stake of its healthcare equipment maker Healthineers (SHLG.DE).

In one of Germany’s biggest listings in recent years, Siemens raised 4.2 billion euros ($5.14 billion) from selling a 15 percent stake in the world’s largest maker of medical imaging equipment.

Kaeser said he was pleased with Healthineers’ share price development, with the stock gaining 6 percent since its debut on March 16.

When asked if he wanted to list more of Healthineers in future, he said the main task was for management to develop the company and achieve the company’s full potential.

“That’s the task now,” Kaeser said. “We will think about other things later.”

Writing by John Revill; Editing by Arno Schuetze and Michael Shields

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