ZURICH (Reuters) – Siemens (SIEGn.DE) stock surged on Friday after the German engineering company said it was speeding up cost savings to tackle the coronavirus downturn and the flotation of its energy business remained on track.
FILE PHOTO: The logo of German industrial group Siemens is seen in Zurich, Switzerland, January 30, 2019. REUTERS/Arnd Wiegmann
The trains to industrial software maker cut its 2020 revenue guidance and said it expected the coming weeks to be the worst of the downturn.
But it also announced plans to float its 2 billion euro ($2.2 billion) Flender mechanical drives business, as part of a strategy to make the group simpler and focus on factory and building automation. It may still keep a stake in the business.
Siemens shares were up 5.2% at 0945 GMT, leading the German DAX .GDAXI and the Stoxx Europe 600 industrial average .SXNP, as investors were also reassured by an improvement at its flagship factory automation unit in the company’s fiscal second…
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