Why is this happening to Siemens???

Siemens AG has been in business for years. In fact, it remains one of the few companies that have survived the two world wars. Siemens Com is a relatively new entity, a flagship business that was formed to grow and dominate the ICT market.

However, call it the effect of globalisation, market dynamics or poor performance, Siemens Com came under speculation since the parent announced its financial results last year. The results clearly showed that Com, a private unit within Siemens AG was bleeding and affecting the overall profitability. With Siemens announcing their JV with Nokia in the service provider space, the future of Siemens Com came under cloud. Answering a question from the press, Siemens executives clearly stated that they are talking to two potential global partners. I expect some announcement between now and next two months. Of the people I spoke to at Siemens, I think they are more inclined to partner with a strong technology player. The only hint that I can offer at the moment is that the partnership will make the new entity number 2 in global revenues.

Today Siemens Com's enterprise unit makes revenues of around 13.5 B Euros globally, growing at 9% HY 2006 over HY 2005 (Siemens fiscal year is from October to September) in sales and has an operating margin of approx 3%. It employs close to 50000 people and has assets in all continents.