* Says no dividend to be expected for 2013
* Plans dividend payout ratio of 30-50 pct in long term
* Sees 2013 loss, albeit smaller than 2012 level
* Osram book value 2.32 billion euros - Siemens
By Maria Sheahan
FRANKFURT, Dec 7 Siemens says
shareholders should not expect any immediate dividend from
lighting unit Osram after its planned spin-off next year, due to
the costs of restructuring.
The loss for the fiscal year ending September 2013 will be
smaller, however, than the 378 million euros ($489 million)
booked a year earlier, according to a spin-off prospectus
published on Siemens' website on Friday.
And for the longer term Osram would aim to pay 30-50 percent
of its annual net profit to shareholders as a dividend.
Siemens plans to give 80.5 percent of Osram, which has a
book value of 2.32 billion euros, to its shareholders in a
spin-off in the spring next year, while keeping 17 percent
Analysts have said they expect that Osram's shares could
list at around 24-25 euros apiece, which would give it a market
value of 2.5 billion and 2.9 billion euros.
The move is part of a broader overhaul of the Siemens group
which entails selling less profitable, non-core businesses, and
saving 6 billion euros.
Osram generates annual sales of about 5 billion euros and
has about 39,000 employees worldwide. Its lamps are used to
light up Disneyland Paris, the Hippodrom beer tent at Munich's
Oktoberfest and the Arena Corinthians in Sao Paulo, which will
host the opening match of the 2014 World Cup soccer tournament.
Osram, whose brand is 106 years old, has come under pressure
to invest in light-emitting diode (LED) technology, having been
slow to adjust to a shift in demand to more efficient and
durable sources of lighting from traditional incandescent bulbs.
LEDs are becoming increasingly popular as a source of
general lighting in shops and restaurants, for outdoor displays,
and for headlights in cars.
Consultancy McKinsey saw the LED market growing more than
sevenfold to almost 65 billion euros by 2020, accounting for the
bulk of global demand for lighting.
NEW STRATEGIC FOCUS
So far only two of Osram's 44 factories in 16 countries make
LEDs - in Regensburg, Germany and Penang, Malaysia - but it is
building a new plant in China at a cost of over 100 million
euros to boost its presence in the fast-growing Asian market.
Meanwhile, newer players in lighting such as South Korean
groups LG Electronics and Samsung Electronics
have been building capacity and driving down prices,
challenging market leaders Philips Electronics, Osram
and General Electric.
"The shift in technology and the resulting fundamental
changes in the business environment require a new strategic
focus," Siemens said on Friday.
Last week, Osram announced that it would cut another 4,700
jobs, or 12 percent of its workforce, and sell factories to save
1 billion euros over three years.
The company had adjusted net debt of 1.1 billion euros at
the end of September, which was down from 1.6 billion a year
earlier. Siemens said it aims for Osram to have an investment
grade credit rating following its listing.
The spin-off still needs the approval of shareholders at an
annual meeting on Jan. 23.