German trains-to-turbines group Siemens plans a public listing of its $15 billion healthcare business in a further step to focus on its core strengths of factory automation, industrial software and energy technology. Hayley Platt reports.
A well timed move by Siemens - announcing its to publicly list its healthcare business for $15 billion. The shock U.S. election victory of Donald Trump could provide a silver lining for the German industrial group. One of Trump's campaign promises - to rebuild infrastructure in America. (SOUNDBITE) (German) SIEMENS CEO JOE KAESER, SAYING: "We want to expand our medical technology in major growth areas. and give the 'healthineers' more flexibility and power in implementing its growth plans. That's why we're listing our healthcare sector." It's not yet known how much of the business Siemens will float or when. But early signs indicate the German industrial group wants to retain control. (SOUNDBITE) (English) CMC MARKETS ANALYST, JASPER LAWLER, SAYING: "It's part of a long running trend that we've seen where companies are increasingly spinning off areas of the business to focus on core assets rather than trying to pull together many different business lines which are not necessarily complementary." The news comes as Siemen's reported an 18 percent rise in net income - in line with expectations. Its industrial business beating forecasts. Only its oil and gas-dependent Process Industries and Drives unit missed its profit target. And shares hit a two-month high (SOUNDBITE) (English) CMC MARKETS ANALYST, JASPER LAWLER, SAYING: "If you look at the world as a whole it looks like these big industrial giants are going to be some of the top beneficiaries if fiscal stimulus is in the pipeline." But orders did fall sharply from the same time a year ago when it benefitted from some large contracts. Siemens remains cautious about the outlook for the current fiscal year, predicting a sales rise of up to 2 per cent. ///