By Noah Barkin
BERLIN (Reuters) - German engineering giant SIEMENS (SIE.XE)
The Munich-based firm's Chief Executive Joe Kaeser has been working on the new strategy since taking power last summer following a boardroom coup that pushed out his predecessor Peter Loescher following a series of profit warnings.
Late on Tuesday, the company announced that it was buying energy assets from Rolls-Royce
Siemens also said it was streamlining its divisional structure, spinning off its hearing aids business and separating out management of its healthcare business -- all steps aimed at strengthening the firm's focus on electrification, automation and digitalization.
The earnings and strategic revamp, dubbed "Vision 2020", come as Siemens mulls a formal offer for the energy business of French rival Alstom
Under former CEO Loescher, Siemens went on an aggressive drive for growth, leaving it lumbered with a complex portfolio of businesses.
RETURN TO ROOTS
Kaeser, 56, a 34-year veteran of Siemens who previously served as its finance chief, has vowed to restore the sense of pride at a company that has lagged big competitors like GE and Philips
In a signal that Siemens is returning to its proud roots, Kaeser is making his presentation at the firm's historic "Siemensstadt" industrial complex in Berlin, which was the site of its headquarters between the two world wars.
Total sector profit, or operating profit, for the fiscal second quarter ending March 31 came in at 1.57 billion euros on revenues of 17.45 billion, missing consensus.
According to a Reuters poll, analysts had expected profit of 1.7 billion euros on revenues of 18.1 billion.
Profit in the energy sector tumbled 54 percent to 255 million euros, largely due to 310 million euros in project charges related to two high-voltage direct current transmission (HVDC) projects in Canada.
"The second quarter showed that we still have a lot to do to improve our operating performance," said Kaeser. "Nevertheless we are on course to reach our targets for the fiscal year," he said, confirming a goal to increase earnings per share by at least 15 percent in the current fiscal year.
Earlier this year, shares in Siemens rose above the 100 euro mark for the first time in six years. But according to Reuters data, the company still trades at a 7.3 percent discount to its major European peers on a 12-month forward EV/EBITDA basis.
Siemens made no mention of Alstom in the statements released before Kaeser's Wednesday presentation to reporters and analysts.
($1 = 0.7177 Euros)
(Reporting by Noah Barkin; Editing by Maria Sheahan)
