Siemens CEO says economic environment still muted
MUNICH, April 25 |
MUNICH, April 25 (Reuters) - German engineering conglomerate Siemens AG may revamp its Power Transmission business in response to fierce competition with rivals in Asia, according to its chief executive.
"The market is under high pricing pressure due to aggressive competitors from Asia," CEO Peter Loescher said on a conference call on Wednesday after Siemens reported a two-thirds drop in second-quarter core profit.
"To secure our strong position in that business in the future, we will take action consistently and quickly wherever we see structural challenges," he said, without providing details.
Especially South Korean rivals such as Hyundai Heavy Industries are posing tough competition for Siemens in the market for transformers and switch gears.
Loescher also said the global economic environment was still muted. (Reporting by Jens Hack; Writing by Maria Sheahan)
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