UPDATE 5-Siemens chief unveils overhaul, won't be forced into Alstom bid

Wed May 7, 2014 8:47am EDT
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* Operating profit falls short of consensus on energy charges

* CEO Kaeser unveils strategic revamp, Rolls-Royce energy deal

* Siemens says won't be forced into bid for Alstom assets (Adds details)

By Noah Barkin

BERLIN, May 7 (Reuters) - German engineering giant Siemens unveiled a long-awaited restructuring on Wednesday in a drive to catch up with more profitable competitors and said it would not be forced into a bidding war with GE for the energy assets of French rival Alstom.

The Munich-based firm's Chief Executive Joe Kaeser has been working on the new strategy since taking power last summer following a boardroom coup that pushed out his predecessor Peter Loescher after a series of profit warnings.

Ahead of Kaeser's presentation at the firm's historic "Siemensstadt" site in Berlin, the company posted weaker-than-expected earnings for its fiscal second quarter, hit by charges in its energy business, and announced a series of smaller deals.

Siemens said it was buying energy assets from Rolls-Royce for 950 million euros ($1.32 billion) and transferring a majority stake in its Austrian metals business to Japan's Mitsubishi Heavy Industries for undisclosed terms.

As part of the overhaul, dubbed "Vision 2020" the company is taking out a layer of management by cutting back to nine core divisions, publicly listing its hearing aids business and separating out management of its healthcare business, a move several analysts said could be a first step towards a spin-off.   Continued...