Siemens Energy cuts management layers, revamps segment reporting

2 minute read

A trader walks next to Siemens Energy AG logos during Siemens Energy's initial public offering (IPO) at the Frankfurt Stock Exchange in Frankfurt, Germany, September 28, 2020. REUTERS/Ralph Orlowski/File Photo

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FRANKFURT, May 24 (Reuters) - Siemens Energy (ENR1n.DE) on Tuesday said it would reduce management posts by about a third and provide investors with more detail of its business in a bid to become more transparent and nimble.

The company, which on Saturday announced a 4.05 billion-euro ($4.32 billion) bid for the remaining stake in wind turbine unit Siemens Gamesa (SGREN.MC), said no layoffs were planned as part of the move.

"Technology is important, but alone it is insufficient. More and more, it will be essential to be able to act quickly and to be close to the customer," CEO Christian Bruch said. "We want to be faster, more flexible, and more customer-oriented."

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Siemens Energy said that it would split its gas and power segment into three business areas - gas services, grid technologies and transformation of industry - to let investors better track development of those individual units.

The new reporting structure will become effective from October, when Siemens Energy's next fiscal year starts.

Gas services, which will comprise the business with large gas turbines of up to 600 megawatts and related services, aims for a mid-term adjusted core profit (EBITA) before special items of 10-12%, up from a pro-forma margin of 7% last year.

Grid technologies, which deals with Siemens Energy's power transmission equipment, targets mid-term margins of 8%-10%, up from a pro-forma 6.5% margin.

($1 = 0.9379 euros)

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Reporting by Christoph Steitz; editing by Miranda Murray and Jason Neely

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