Nov. 11 - German engineering group Siemens hopes to see results of its cost-cutting and higher profit in 2014 as it tries to catch up with more profitable rivals. New CEO Joe Kaeser, who got the top job in late July, will reveal his new strategy in May 2014. Joanna Partridge reports
He's only been in the top job at Siemens since July, the victor of a boardroom battle. But investors eager to hear Joe Kaeser's strategy for the German engineering group have to wait for another six months. He'll set out his plans for the company, whose products range from fast trains to gas turbines, in May 2014. Siemens was already in the middle of a cost-cutting programme - slashing 15,000 jobs - when Kaeser took over. SOUNDBITE: Joe Kaeser, Siemens CEO, saying (German): "I don't think that we need another cost-cutting programme. Value, which should be lasting, comes through innovation. A short-term cost-cutting programme doesn't offer long-term perspective. You can do that when structural changes occur in markets or with products, like over the past few years with the European debt crisis. We had to adapt to structural changes then because the markets required it." Siemens has fallen behind more profitable rivals like General Electric and Switzerland's ABB due to a focus on sales growth and poor project management. But Germany's second-biggest company by market value hopes to see the restructuring paying off by next year. It expects earnings to rise by at least 15% in 2014. SOUNDBITE: Joe Kaeser, Siemens CEO, saying (German): "We will work carefully and implement the things we've envisaged for 2014. We spent over 1.3 billion on the restructuring over the past year and here, we will carefully implement improved productivity." But Siemens doesn't face an easy ride. Industrial companies are delaying spending due to the weak global economy, and many are slashing costs and jobs, meaning fewer orders for Siemens and its competitors. Siemens also announced a plan to buy back up to 4 billion euros' worth of shares - and its stock rose to its highest level in 2 and a half years in response.