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Siemens' Osram eyes 512 million euro profit by 2015: magazine
January 20, 2013 / 3:06 PM / in 5 years

Siemens' Osram eyes 512 million euro profit by 2015: magazine

FRANKFURT (Reuters) - Siemens’ (SIEGn.DE) loss-making lighting unit and spin-off candidate Osram aims to post a 512 million euro ($681 million) pretax profit by 2015 thanks to tough cost cutting, a German magazine reported.

Wirtschaftswoche cited company internal documents as saying Osram planned to cut 8,000 of it 39,000-strong global workforce, including 1,800 in Germany. The magazine added that 400 jobs in Germany had already been axed.

Osram planned to shut around a third of its 39 facilities around the world, the magazine cited a company source as saying in its report, which was released ahead of publication on Monday.

A spokesman for Osram said the magazine’s figures were not correct.

The basis for the calculation was 41,000 jobs rather than 39,000, the spokesman said, adding that the company planned to cut 1,400 jobs in Germany rather than the 1,800 cited by the magazine. Germany had seen 300 job losses so far, he added.

The company had given information about its financial outlook in a spin-off prospectus published in December and would not comment beyond that, the spokesman said.

Siemens said last month it expected Osram to post a loss in the fiscal year ending September 2013, though a narrower one than in the previous year.

Siemens plans to give 80.5 percent of Osram, which has a book value of around 2.3 billion euros, to its shareholders in a spin-off in the next few months.

Shareholders are due to vote on the plan at their annual meeting on Wednesday.

Wirtschaftswoche said the Osram share could make its stock market debut on April 18, in the absence of legal challenges.

The spin-off is part of a broader overhaul of the Siemens group which entails selling less profitable, non-core businesses, and saving 6 billion euros. ($1 = 0.7524 euros)

Reporting by Martin Zwiebelberg and Jonathan Gould; Editing by Hans-Juergen Peters

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