Siemens reorganizes, reconfigures automation and drives unit

Nov. 30, 2007
NOVEMBER 30, 2007--Siemens (Munich, Germany) has announced a major restructuring of the company.

NOVEMBER 30, 2007--Siemens (Munich, Germany; has announced a major restructuring of the company, reorganizing its operations into three sectors: industry, energy, and healthcare, containing a total of 15 divisions, as of January 2008. "This new and more focused company structure will further increase our profitability and transparency. Clear responsibilities will ensure that we are faster in the market and closer to our customers," said Siemens president and CEO Peter Löscher. The industry and energy sectors will each have six divisions, and the healthcare sector three. The new global heads of the divisions will be announced early in December.

The industry sector will be headed by Heinrich Hiesinger and will comprise six divisions: industry automation, motion control, building technologies, industry solutions, mobility, and Osram. Wolfgang Dehen will head the energy sector, which will also have six divisions: fossil power generation, renewable energy, oil & gas, service rotating equipment, power transmission, and power distribution. Erich R. Reinhardt will be responsible for the healthcare sector, which will be organized in three divisions: imaging & IT, workflow & solutions, and diagnostics.

Siemens IT Solutions and Services as well as Siemens Financial Services (SFS) will support sector activities as business partners and, in addition, will continue building up their own business with external customers. Christoph Kollatz will continue to head Siemens IT Solutions and Services and Dominik Asam will remain head of SFS.

In a next step, the heads of the new divisions will be named early in December. The new margin target ranges for industry and energy will be announced at the annual shareholders' meeting on January 24, 2008. The target range for healthcare was already raised early in November to 14%-17%, up from 13%-15%.

Siemens will maintain its basic matrix structure for its global businesses and regional companies, but will once again place greater emphasis on the so-called "right-of-way" regulation that gives priority to its global businesses. The concept for the company's future regional focus will be implemented in 2008. The tasks of the regional companies will be further developed, and the sales responsibility of the regions will be strengthened for the benefit of the customers.

The industry sector will primarily be comprised of the business activities of these existing groups: automation and drives (A&D), industrial solutions and services, transportation systems, Siemens building technologies, and Osram. According to the company, consolidating these business activities under one roof will offer major synergies in hardware and software platforms as well as for sales and marketing. Around 209,000 employees will work in the new Siemens sector. The sector's businesses generated revenues of roughly €40 billion in FY2007. Siemens anticipates that the Sector's target markets will show 5% annual growth and reach a volume of nearly €500 billion by 2010.

The new industry-automation division of the industry sector includes machine-vision products and extends from standard products to system solutions for energy and automation technologies used in manufacturing and process industries. The division optimizes entire value-added chains of manufacturing companies--from product design and development, to production, sales, and service.

The new motion-control division will offers its customers solutions for electronics manufacturing, as well as complete systems, including standard and large drives applications across the entire drive train. These solutions, comprised of numerical-control systems, converters, motors and drives, are tailored to the respective application. Osram's product portfolio includes lamps and optoelectronic semiconductor light sources such as LEDs, control electronics, and light-management systems.

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