Siemens escalates its energy business amid Covid-19

Offshore wind energy supply vessel

Offshore wind energy supply vessel

As the pandemic violently sweeps over the world wreaking havoc in businesses and lives alike, Siemens, the largest industrial manufacturing company in Europe, said its stocks leaped after it announced that it was speeding up cost savings. The floatation of its energy business is smooth and in the right direction, the company stated. The other units of Siemens- Siemens Gas and Power, Siemens Gamesa Renewable Energy, are being separated into a new company called Siemens Energy that will be floated later this year, thus offering its share in the public stock market.

Chief Financial Officer Ralf Thomas mentioned that there would be a drop of 5% in its sale in comparison to the prediction of moderate sales in 2020. While China was able to get on its feet, there was no sign of improvement in USA or in India where twenty of its factories were shut.

However, Siemens’ announcement of levitate its 2 billion-euro ($2.2 billion) Flender mechanical drives business, to streamline the group, and focus on factory and building automation. Siemens has accelerated its previously declared efficiency drive, by generating 165 million euros in savings in digitization and infrastructure divisions to the end of 2021. Kaeser also added that they were preparing for the ebb in the fiscal third quarter based on their discussions with customers and observing the trends in the supply chain. They are confident despite the grim atmosphere, hoping to see a rise in business and restoring of equilibrium after approximately three quarters.

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