Siemens Chief Executive Joe Kaeser on June 19 mentioned experiences final week that the German engineering firm was contemplating a sale of its gasoline generators manufacturing unit are “media hypothesis.”

Kaeser made the remarks throughout an occasion in Zurich, Switzerland. He informed Reuters that his firm needs to enhance the efficiency of the turbine unit, although he didn’t handle whether or not Siemens intends to maintain the unit.

“This is media hypothesis and in our view there is no such thing as a must touch upon media hypothesis,” Kaeser mentioned. “We know what we’re doing. We have a transparent dedication we’re going to make good on. We are literally doing a lot better than the competitors and it is a good factor.”

Turbine manufacturing and repair is a part of Siemens Power & Gas division. The unit’s income dropped 74% throughout the most-recent quarter. Barclays estimates giant generators account for about 35% of the division’s gross sales.

Siemens in a March report reduce its 2018 forecast for the big turbine market by 10%, to 100 items. Board member Lisa Davis, who’s accountable for the unit, in May mentioned she didn’t see indicators of a “medium-term restoration” within the sector. Davis in a memo to employees on June 15 mentioned Siemens is “dedicated” to its turbine enterprise.

Reports from Bloomberg on June 13 mentioned Munich, Germany-based Siemens is contemplating a number of choices for its turbine enterprise, together with a sale. Siemens, together with rivals General Electric (GE) and Mitsubishi Hitachi Power Systems (MHPS), is fighting fewer orders for its generators as extra energy mills go for renewable vitality sources of their portfolios. MHPS has moved forward of its two rivals by way of the variety of orders acquired for gasoline generators within the first quarter of this 12 months, in response to Barclays. GE in December 2017 mentioned it will reduce 12,000 jobs in its energy unit.

Bloomberg’s report final week additionally mentioned Siemens may maintain the unit and attempt to climate the present world slowdown in demand for gasoline generators. The firm in November 2017 mentioned it will reduce 6,900 jobs, principally within the Power & Gas division, in an effort to cut back prices.

Darrell Proctor is a POWER affiliate editor (@DarrellProctor1, @POWERmagazine).

The put up Siemens’ CEO: Sale of Turbine Unit Just ‘Media Speculation’ appeared first on POWER Magazine.

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