Siemens names new CEO, reports Q3 financials

German industrial conglomerate Siemens AG on 31 July announced a new CEO to replace departing executive Peter Löscher, and also released financial results for the company's third quarter (end-30 June).

Siemens said chief financial officer Joe Kaeser would replace Löscher, who has agreed to leave Siemens after the company said it would fall short of profit expectations. Kaeser is a longtime Siemens veteran, while Löscher was the first CEO from outside the company hired to lead Siemens in its history.

Concurrent with announcing Kaeser's ascension, Siemens reported third-quarter financial results that showed total revenue and profit climbing in its Siemens Healthcare segment. The company said the Healthcare and Infrastructure & Cities divisions contributed to overall revenue growth, but this was more than offset by declines in its Energy and Industry sectors.

For the quarter, the Healthcare division posted revenues of 3.367 billion euros ($4.47 billion U.S.), up 1% on an actual basis and 4% on a currency-adjusted basis compared with revenues of 3.343 billion euros ($4.44 billion U.S.) in the corresponding quarter of 2012. The segment's profit was 499 million euros ($662.5 million U.S.), up 26% compared with 396 million euros ($525.7 million U.S.) in the third quarter of 2012.

Orders for the healthcare division were 3.274 billion euros ($4.35 billion U.S.), down 1% on an actual basis and up 2% on a currency-adjusted basis compared with orders of 3.316 billion euros ($4.4 billion U.S.) in the second quarter of 2012.

Siemens said profit growth in the Healthcare business derived from improvements in the sector's cost position from its Agenda 2013 initiative, as well as lower charges from the program. On a regional basis, the Healthcare division's revenue growth came from Asia and Australia, led by China with double-digit growth. Europe and the Commonwealth of Independent States/Middle East region posted moderate order growth, while declines in orders came from Asia, Australia, and the Americas.

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