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Siemens announces new business development strategy
Siemens, a German corporation, has decided to take a new direction, thereby expanding its position in the digital solutions market. To this end, it will allocate funds for the development and launch of products in the sectors of artificial technologies, process automation and cybersecurity.
To achieve this task, the corporation plans to integrate the digital experience it gained in the implementation of its products into the engineering business. Siemens is confident that the use of innovative software will speed up the process of introduction to prospective markets. Thus, the corporation wants to expand its activities and demonstrate leadership not only in the industrial sector but also in the segment of modern technologies.
So far there is no exact information about how much money the company is ready to invest in the development of new areas. However, it is said that Siemens plans to increase its annual revenue by 5-7% by mastering a new type of products. These figures exceed the previous financial forecast, which stated 1-3% growth.
Siemens is also actively developing through acquisition of other companies. For example, in the spring of this year, the corporation bought Supplyframe, which develops electronic elements. The deal amounted to 700 million dollars. In 2020, the German conglomerate acquired Varian Medical Systems, which cost more than $16 billion.
Siemens intends not only to increase profitability, but also to buy back its shares. About 3 billion euros will be spent on the return of the securities, and the process itself will take about 5 years. The analysts of the company forecast that the net profit for the year will be 5.7-6.2 billion euros. Thus, earnings per share will grow from 8% to 10%.
Siemens places special emphasis on the fact that the direction of digital technology within the company will develop more intensively. In 2020, the profit of this direction brought 5.3 billion euros, and in the future the figure should increase by 10% to 5.8 billion euros.
However, despite the optimistic forecasts of the company’s analysts, Siemens shares have been showing slow appreciation, remaining in the range of 135-137 euros per share for a long time.
German Siemens is considered one of the oldest technology corporations in the world. It was founded in 1847 by engineer Werner von Siemens. During its history, the company has developed various areas – energy, rail transport, medical equipment, mobile devices, household appliances and much more. Now it is the leading conglomerate in Europe and supplies its products to different parts of the world.