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Siemens plans Healthineers IPO for 1H 2018

August 3, 2017

German industrial group Siemens said it plans an initial public offering of its healthcare unit, expected to value the business at up to 40 billion euros ($47 billion), in the first half of 2018.

The trains-to-turbines group wants Healthineers to have its own currency for acquisitions and investments as the global healthcare market shifts focus from Siemens’ core business of imaging to molecular diagnosis and patient self-management.

Healthineers was the biggest contributor to Siemens’ third-quarter profit in financial results published on Thursday, with a 9 percent increase to 579 million euros ($686 million), in line with expectations, and a 2 percent rise in orders.

Siemens also said its supervisory board had extended the contract of Chief Executive Joe Kaeser ahead of time until the company’s 2021 annual shareholder meeting. It had been due to run out next year.

“(Kaeser) is not only a guarantor of success, but also of stability in increasingly turbulent times,” Chairman Gerhard Cromme said in a statement.

Siemens’ third-quarter results as a whole missed expectations, with profit from its industrial businesses of 2.25 billion euros versus a Reuters poll average of 2.41 billion, orders down 9 percent and sales up 3 percent.

The Power and Gas unit, which is suffering from a global trend away from the large turbines in which Siemens specialises, reported a 41 percent drop in orders and a worse-than-expected 23 percent fall in profit.

Digital Factory, the automation software unit that is Siemens’ second-biggest profit driver, reported an 18 percent rise in orders and a 23 percent increase in profit, beating market expectations.

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