BERLIN (Reuters) - German engineering group Siemens (SIEGn.DE) is probing its China operations as sales and orders in the world’s second-largest economy have failed to grow, Wirtschaftswoche reported without citing the source of the information.
The Munich-based company’s strategy division is carrying out an examination of activities in China, results of which Siemens executive board will discuss in October before implementing possible changes in policy, the magazine said on Saturday,
Activity in China’s vast manufacturing sector has been slowing as new orders faltered and the job market weakened.
Siemens, which generated about 8 percent of group sales in China last year, has warned it did not see industrial demand in China recovering before its fiscal fourth quarter this year.
A spokesman for Siemens declined to comment on the article.
Pressure is mounting on Siemens Chief Executive Peter Loescher following a profit warning this week. Members of the company’s supervisory board will meet this weekend to discuss the future of the engineering group’s management.
Siemens said on July 25 it no longer expected to reach a target of raising its core operating profit margin to at least 12 percent from 9.5 percent by 2014.
Reporting by Andreas Cremer; Additional reporting by Maria Sheahan; Editing by David Holmes