Siemens May Sell Diagnostics to Skip Investment, Kepler Says
2014-02-18 09:25:17.189 GMT
By Chris Malpass
Feb. 18 (Bloomberg) -- Siemens should sell its diagnostics
business before margins erode, to exit an area that needs
significant investment to remain competitive, KeplerCheuvreux
says in note.
* Notes no one else sees Siemens disposing of diagnostics amid
revamp
* Potential disposals analysts have already identified include
building tech, hearing aids, baggage handling, metals tech
with total annual sales ~EU9b, and EV ~EU6.4b:
KeplerCheuvreux
* Diagnostiocs unit needs “major investments” to remain
competitive vs Roche
* 2013 underlying diagnostics margin 14.8% vs Roche 20.1%
* Needs R&D boost, bolt-on acquisitions to keep up with
Roche
* Notes co. may be reluctant to sell as margin above avg
for Siemens healthcare, business was revamped after
being acquired in 2007: Kepler
* Sees diagnostics sale 250bp accretive to ROCE:
KeplerCheuvreux
* NOTE: Siemens has announced 38 disposals in past 5 years of
which 30 completed, 6 pending, 1 cancelled, 1 proposed;
total value $4.4b: Bloomberg data
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To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-02-18 09:25:17.189 GMT
By Chris Malpass
Feb. 18 (Bloomberg) -- Siemens should sell its diagnostics
business before margins erode, to exit an area that needs
significant investment to remain competitive, KeplerCheuvreux
says in note.
* Notes no one else sees Siemens disposing of diagnostics amid
revamp
* Potential disposals analysts have already identified include
building tech, hearing aids, baggage handling, metals tech
with total annual sales ~EU9b, and EV ~EU6.4b:
KeplerCheuvreux
* Diagnostiocs unit needs “major investments” to remain
competitive vs Roche
* 2013 underlying diagnostics margin 14.8% vs Roche 20.1%
* Needs R&D boost, bolt-on acquisitions to keep up with
Roche
* Notes co. may be reluctant to sell as margin above avg
for Siemens healthcare, business was revamped after
being acquired in 2007: Kepler
* Sees diagnostics sale 250bp accretive to ROCE:
KeplerCheuvreux
* NOTE: Siemens has announced 38 disposals in past 5 years of
which 30 completed, 6 pending, 1 cancelled, 1 proposed;
total value $4.4b: Bloomberg data
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net