Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
German engineering firm Siemens AG has appointed a new CEO after letting go of Peter Loescher just a few days earlier and has announced Q3 2013 results showing a 2% revenue drop.
Joe Kaeser, the new CEO, spoke at a press conference on Wednesday reassuring investors that his priority will be to “bring calm to the company” and end the media frenzy which lately has only spoken of “chaos and collapse, misfortune and mishaps.”
Kaeser highlighted the company’s order volumes which grew 20% this quarter compared to the same period last year – representing €21.1 billion in sales.
Net income rose to €1.1 billion – the result of a €94 million influx from discontinued operations – with earnings per share hitting €1.27, up from €0.85 in 2012.
Reiterating an announcement made last week, Kaeser noted that Siemens will not see the expected profit margin of 12% in 2014.
Profit declined to €1.26 billion, mainly the result of the “Siemens 2014” productivity improvement program which booked a charge of €436 million. The engineering firm expects to incur “substantial additional charges” for the program in Q4.
Kaeser also paid homage to the departing CEO, noting his predecessor’s achievements.
“These successes and the precedent-setting way that Siemens resolved the transgressions of its past during this period are the irrefutable legacy of Peter Löscher,” he said.
Kaeser has been the technology company’s CFO since 2006 but joined the firm over 30 years ago.
