FRANKFURT: Chief Executive Siemens Joe Kaeser promised on Tuesday, the German engineering group would focus more on stable internal growth and higher margin services than on attention grabbing M&A deals.
Kaeser said at Siemens’s Capital Markets Day I will consider growth to be mostly organic rather than acquired setting out details of his strategy.
Kaeser aims to get any underperforming businesses up to speed or dispose of them, bolster research and development and leverage Siemens’s existing industrial businesses to win lucrative services contracts.
Kaeser unveiled a corporate overhaul dubbed Vision 2020 in May that will simplify the group’s structure and help it make up ground on more profitable rivals such as Switzerland’s ABB and US based General Electric.
Further Kaeser said change in corporate culture would help Siemens focus on long-term success rather than short-term sales growth.
In September, he agreed to buy US oilfield equipment maker Dresser Rand for $7.6 billion in cash, paying a relatively high price to belatedly beef up its presence in the U.S. shale oil and gas industry.
The move came after GE beat Siemens in a bidding war in June for the energy business of France’s Alstom in a $16.9 billion deal. Kaeser said he would not consider pulling out of the deal to buy Dresser Rand despite the steep fall in oil prices.