News

Posted On: 08/07/2008

Siemens shares bullish perspective

PlantServices.com

“We provide solutions to assist our customers with the very real challenges they face,” began Heinrich Hiesinger, CEO of Siemens’ Industry Sector business and member of the Siemens Board of Directors. Hiesinger was in Chicago July 21 for the U.S. debut of exiderdome, Siemens’ traveling technology expo. On display in conjunction with the Siemens Automation Summit and Users Conference, exiderdome (www.exiderdome.com) was beginning a nine-city tour of industrial centers across the United States.

Hiesinger discounted much of the effect of the current “recession.” He said, “It isn’t whether or not we will have growth, but how much.” Depending on whether we see worst-case, best-case or something in between, Hiesinger predicted growth of between 1.9% and 3% during the next several years, rather than the typical contraction of a true recession. “Industry trends buck reductions in capex [capital expenditures] spending,” he said. Those trends include resource scarcity, environmental issues and greening, energy demand, productivity growth and urbanization.

He pointed out that the six businesses that make up the industry sector are designed to meet those trends head on. “Metals will continue to grow, up approximately 5% until 2012,” he said. “Drives for wind power will be up by 20%, limited only by capacity.” Opto-semiconductors will grow by 9%, Hiesinger continued, while PLM software will grow by 8%, and traffic solutions, such as light rail, will grow by 11%. Hiesinger noted that Siemens is currently No. 1 in the metals and mining, water treatment, wind gearboxes, building automation and fire safety markets.

Like other Europe-based industrial giants, Siemens is very focused on green markets. Hiesinger said that he believed that “green” would grow by at least 10% per year and showed some data indicating that Siemens has a better environmental portfolio than its competitors. “Our environmentally friendly portfolio,” he said, “is approximately 23% of revenue, growing at 10% per annum and expected to be 25% of revenue by FY2011.”

In honor of the exiderdome’s U.S. tour kickoff, Hiesinger reiterated Siemens’ strong commitment to its U.S. operations. “The U.S. is home to game-changing investments,” he said. He pointed out that acquisitions like US Filter, which made Siemens the largest water-treatment company in the world, also have strengthened Siemens’ position here.