What Siemens is doing—including Osram
Posted by tED magazine
on Wednesday, March 14, 2012
By Joe Salimando
year ended 9/30/11, Siemens AG of Germany had (roughly, using current exchange
rates) $97B in revenues and $113B in new orders. That’s from the company’s
388-page online report.
recently, the company realigned itself – something that has to do with its
focus on “infrastructure and cities.” Here’s a picture:
other things, Osram is posted in italics because, as the company has said since
March 2011, it plans to sell the company (keeping an “anchor” percentage of
Osram shares – a minority interest). Siemens is awaiting the right market
conditions to conduct an Initial Public Offering of Osram stock.
in the FY11 financials, Osram is carried as a “discontinued operation.”
sell one of the world’s leading lighting companies? Official answer: “Independence will provide our
lighting activities with the capital and flexibility they need to succeed in a
FY11, Osram’s sales were roughly $6.6B, with after-tax earnings north of $400
million. What’s it worth? According to this 8/3/11 Bloomberg.com article, some
place between $6.2B and $10.8B (using the then-current euro-dollar exchange
rate, which was one euro = $1.44).
say Siemens holds onto 20% of Osram and sells off 80%, and pick the mid-point
of the August valuations ($8B). The IPO could bring in $6 billion or more to
Siemens’ coffers, while getting its debt (existing and future) off the
company’s balance sheet.
on Osram: I would bet the folks at GE and Philips have half an eye on the Osram
IPO, especially Philips. Lighting is roughly a third of Philips’ global
revenues; it’s a smaller share for GE, of course. Even if neither company plans
to spin off even a minority piece of its lighting op, having a valuation
yardstick (the ongoing price of Osram stock, once it trades) will be helpful to
the “C”-level execs at each company.
How is Siemens doing in the U.S.? Q1/12 sales rose 2%, with orders
up 6%. These measures compare Q1/12 with Q4/11.
ended months ago. How is Siemens doing lately? Read the 15,000-plus
words of transcripts of the 1/24/12 conference call (which included a Q-and-A) and annual general meeting.
How big is Siemens? For comparison, GE’s 2011 revenues
were almost $144B; ABB’s FY11 revs were almost $38B (that’s before adding
T&B). I’d say ABB is a pretty big company, wouldn’t you?
Most interesting recent news? Siemens is so big, and so
interesting, that tedmag.com could provide one week’s worth of news per month
just on its electrical & energy ops. Recent stuff you might want to read:
Siemens outbids Belden for
Siemens to hire 300 (U.S.)
veterans in 2012.
“Answers” is theme of new U.S.
ads (from Ogilvy
Siemens “blindsided” by China
“ABB CEO Hogan Bolsters Revenue
with Takeovers as Siemens Waivers.”
And on Osram:
Sylvania CEO: Not Changing
Direction on Efficient Light Bulbs
Joe Salimando of EFJ
Enterprises is a consultant, web content provider, and wordsmith based in
Oakton, Va. To contact him, call 703-255-1428. See also The EleBlog.
Personal Disclaimer: The appearance of the
ambling pachyderm is indicative of the writer's obsession with elephants, not
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