Siemens Healthineers Targets Savings Ahead of IPO
January 16 2018 - 8:13AM
Dow Jones News
By Nathan Allen
Siemens AG's (SIE.XE) health-care division is aiming for annual
cost savings of 240 million euros ($293.9 million) a year ahead of
its planned listing on the Frankfurt stock exchange, the company
said Tuesday.
Siemens Healthineers, which makes medical-imaging and diagnostic
devices, said it expects the savings to come into full effect by
2020.
The division is one of Siemens' most profitable, generating
revenue of EUR13.7 billion and almost 30% of group pretax profit in
fiscal 2017, according to figures the company published at its
capital markets day on Tuesday.
Siemens Healthineers Chief Financial Officer Jochen Schmitz said
the company expects revenue growth to increase to between 4% and 6%
in the medium term compared with 2.7% in 2017 as an aging global
population and the rise of chronic diseases expand the global
health-care market.
However, revenue and profit margins are likely to be hurt in
2018 due to foreign-exchange headwinds, he added.
Siemens didn't provide more detail about the scale of the
planned listing, but it has previously been reported that the
company is considering listing a slice of between 15% and 25%.
Analysts estimate that Healthineers could have an enterprise value
of up to $47 billion, with the float worth anywhere between $6
billion and $12 billion.
If Siemens Healthineers reaches the high end of its valuation
range, the listing could be the largest European initial public
offering since Glencore PLC's (GLEN.LN) $10 billion flotation in
2011 and one of the largest ever German IPOs, according to data
from Dealogic.
Write to Nathan Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
January 16, 2018 07:58 ET (12:58 GMT)
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