Siemens AG, the parent company of Siemens Healthcare, has announced a broad-based restructuring of its portfolio, called Vision 2020, creating nine divisions to replace the 16 under which the company previously operated.
The Vision 2020 plan calls for Siemens to emphasize the "electrification, automation, and digitalization" fields, where the company sees maximum long-term potential. As part of the emphasis, Siemens has acquired the Rolls-Royce Energy auto-derivative gas turbine and compressor business.
In addition, Siemens said that its Healthcare business will be separately managed in the future, a move that will give the business "greater flexibility on the medical engineering market," which is characterized by fundamental changes and paradigm shifts.
The Healthcare sector's Audiology division, which markets hearing aids, will be spun off with a public offering. While the division was experiencing growth with good profit margins, it had no "synergistic value" with the rest of Siemens, and could probably better realize its full potential outside of the company, the firm said.
On the financial side, Siemens reported results for the second quarter of 2014 that show the company's Healthcare revenues rose after adjusting for the strong euro, while operating income jumped.
For the quarter, Siemens Healthcare turned in revenues of $4.516 billion (3.256 billion euros), down 1% on an actual basis but up 5% on a currency-adjusted basis compared to revenues of $4.546 billion (3.278 billion euros) in the same period of 2013. The company said that revenues and orders declined in the Americas region, while orders fell in the Asia and Australia regions.
The Healthcare division posted a second-quarter profit of $736.4 million (531 million euros), up 19% on an actual basis compared to $617.1 million (445 million euros) in the second quarter of 2013. Operating profit for the sector was aided by income of $91.5 million (66 million euros) related to the installation of a particle therapy site.