|Siemens N Ord
||SIEMENS ORD SHS
||EPS - Basic
||Market Cap (m)
|Electronic & Electrical Equipment
Real-Time news about Siemens N Ord (London Stock Exchange): 0 recent articles
|waldron: Siemens Bids C$382 Million for Ruggedcom, Trumping Belden
QBy Richard Weiss - Jan 30, 2012 5:22 PM GMT+0100 .
Business ExchangeBuzz up!DiggPrint Email ...Siemens AG (SIE), Europe's largest engineering company, offered C$382 million ($380 million) to buy Ruggedcom Inc. (RCM), entering a bidding contest for the Canadian network company with Belden Inc. (BDC)
Siemens agreed to pay C$33 for each share of the Woodbridge, Ontario-based maker of communications equipment used in industrial processes, the Munich-based company said in a statement today. That's more than twice as much as Ruggedcom's closing share price on Dec. 16, the last day of trading before St. Louis, Missouri-based Belden offered C$22 on Dec. 19.
The German manufacturer aims to duplicate the success of its $3.5 billion acquisition of UGS Corp. in 2007, which helped it gain an edge in industrial software. Chief Executive Officer Peter Loescher is relying on Helmuth Ludwig, head of Siemens's North American industrial operations, to make the transaction work after the company booked goodwill impairments on purchases Loescher has made since becoming CEO that year.
"UGS was a success, it went well, now we are trying to do it again," Ludwig, who was involved in the Plano, Texas-based software maker's takeover, said in a telephone interview. Ludwig said he's confident Ruggedcom will meet goals for return on capital employed. Even so, achieving the company's rules for a takeover target's enterprise value will require "hard work" and may take as many as three years.
Ruggedcom rose as much as 26 percent to C$33, the biggest intraday jump since Dec. 19, and was trading at C$32.86 at 11:16 a.m. in Toronto. Siemens fell as much as 1.1 percent to 72.02 euros and was down 0.9 percent in Frankfurt. The German company' stock is at the lowest price in about six weeks.
Siemens usually requires an acquisition to add enterprise value two years after completion, and to meet return-on-capital- employed goals three years after integration.
The manufacturer has a goal of becoming a company with 100 billion euros ($131 billion) in sales through acquisitions. Sales in the fiscal year ended Sept. 30 totaled 73.5 billion euros.
ABB Ltd., a Zurich-based competitor which today agreed to buy Thomas & Betts Corp. for $3.9 billion, has exceeded $10 billion in acquisition spending since 2010.
Siemens's offer Ruggedcom's board of directors as well as Chief Executive Officer Marzio Pozzuoli and Finance Chief Roy Dalton, who together hold 13.6 percent of the shares, the Canadian manufacturer said.
Belden's approach was unsolicited. Ruggedcom said on Dec. 19 it was evaluating Belden's proposal and that it's considering alternatives.
"We have a deal book, and Ruggedcom was on it, allowing us to act fast after the necessity came up," Ludwig said.
Ruggedcom has 360 employees and reported revenue of about $94 million in the fiscal year ended March 31, 2011.
To contact the reporter on this story: Richard Weiss in Frankfurt at email@example.com
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|waldron: 2nd UPDATE: Siemens Profit Up, Raises Full-Year Guidance
(Adds analyst's comment.)
By Archibald Preuschat
Of DOW JONES NEWSWIRES
MUNICH (Dow Jones)
Siemens AG (SI) Thursday posted a 54% rise in second-quarter net profit as restructuring measured boosted margins, and it raised its profit guidance for the current fiscal year.
Closely-watched operating profit at its core businesses of energy, industry and healthcare in the quarter ended March 31 was up 16% to EUR2.14 billion as cost cutting measures took effect and the figure was buoyed by a EUR180 million gain on the curtailment of pension plans in the U.S.
As expected, Siemens also raised its full-year guidance for operating profit in its core sectors, saying it now expects to exceed last year's figure of EUR7.5 billion, from previous guidance of a range between EUR6 billion and EUR6.5 billion.
Net profit for the period rose to EUR1.48 billion from EUR962 million a year earlier.
"Siemens has again demonstrated its profitability impressively. In this regard we are profiting in particular from measures we initiated early on to strengthen our competitiveness," Chief Executive Officer Peter Loescher said in a statement.
Still, the higher operating profit came even as sales fell 4% to EUR18.23 billion, while order intake declined 14% to EUR17.84 billion. Siemens kept its guidance for full-year revenue to fall by a mid-single-digit percentage.
Siemens said it booked two major contracts totaling EUR1 billion in the same period a year ago and some major projects in the energy sector have been postponed. Its book-to-bill ratio was 0.98, it said.
Siemens is a barometer for the world's manufacturing industry, with 402,000 employees in 190 countries and products that span hospital equipment, transportation, factory automation gear and power turbines. In common with rivals General Electric Co. (GE) and Netherlands-based Philips Electronics NV (PHIA.AE), it has suffered from the demand slump brought about by the downturn.
In 2008, Siemens began a process to strip EUR2 billion from its selling, general and administrative expenses and axed 12,600 jobs.
Siemens said that its businesses most affected by economic swings, such as lighting unit Osram, had started to improve earlier than planned and it expects healthcare reform in the U.S. to have a positive impact, but late-cycle business such as major energy plants are expected to remain challenging into the second half of the year.
The second-quarter results beat market expectations but did the same by a similar margin in previous quarters, said JPMorgan analyst Andreas Willi, adding he doesn't see any big driver for the share price Thursday and underlying trends support his view on the stock. Willi rates the share at overweight with a price target of EUR89.
By 0841 GMT, Siemens shares were up 0.9% at EUR72.60, against a 0.3% rise in the DAX.
Company Web site: www.siemens.com
-By Archibald Preuschat, Dow Jones Newswires, +49 211 138 7218, email@example.com|
Siemens N Ord share price data is direct from the London Stock Exchange