Siemens unit well placed for merger

Siemens Mobility, which is being merged with Alstom’s rail business, is performing well, according to the German industrial group’s CEO, Joe Kaeser.

“We have an excellent mobility business, you can already see that in the figures of the first quarter,” he said on the sidelines of the Hannover Messe trade fair on Monday.

“I am not revealing any secrets when I say that I was very happy when I saw the mobility figures for the second quarter,” Kaeser said.

Siemens is expected to publish second-quarter results on May 9.

Siemens and French rival Alstom agreed in September 2017 to merge their rail operations, creating a European champion to withstand the international advance of China’s state-owned CRRC Corporation. Siemens will own 50% plus a few shares of the joint venture, to be called Siemens Alstom, while Alstom will supply Henri Poupart-Lafarge as CEO, helping to counter criticism that France is giving up control of another national industrial icon.

“We are well on our way and have to work hard to make the merger work. I am not afraid this won’t be a great success,” Kaeser said.

The mobility merger is part of Kaeser’s strategy to simplify Siemens operations by separating the diverse conglomerate into what he has termed “a fleet of ships” that thrive under their own steam. Under this approach Siemens has already sold off a stake of its healthcare equipment maker, Healthineers.

In one of Germany’s biggest listings in recent years, Siemens raised €4.2bn from selling a 15% stake in the world’s largest maker of medical imaging equipment. The Healthineers share price has gaining 6% since its debut on March 16.