@Himanshugupta, Siemens is a big company with almost $100 billion in annual revenue so the increase in its R&D budget isn't as huge as it sounds. However, you are right to wonder what the company wants to spend the money on and I agree energy will be a major part.
Hi Jennifer, increasing RnD by 500Million is really a lot. In which areas is Siemens spending apart from gas turbine? I read a report on The Economist that the emerging nations are the most enery hungry and potential targets of the energy related investments.
Great news from Siemens, and I guess it also has to do how Germany is doing, the EuroZone is going to pieces (Greece, Italy... and other to follow?) but Germany has been growing. Lets hope that it can continue to grow.
It is great news that Siemens has been growing, and not exactly surprising that they are expecting a slowdown. The good news is that they are focusing on some emerging markets, and this should help the company grow for the long term.
Interesting article, Jennifer. Any idea how other electronic giants (particularly the ones in Europe) are doing in terms of profits and growth? Comparing the performance with them will give a better idea of how Siemens is really doing.
Yes, some pixie dust would be nice. And, as the others mention, it will be interesting to see how companies who know the economy is slowing respond and if Wall Street gives them some leeway in how numbers shake out the next few quarters.
The good news is that, those companies will have a good revenue margin before facing 2012 challenges and they might do relatively well next year as the market is promising due to recent change of heads in Europe.
I enjoyed your article. It is great to see a company like Siemens doing so well. I wish they could sprinkle some of their pixie dust over the rest of Europe.
Jennifer, most of the companies are showing a better sales and profit rate in Q1-Q3 of 2011. But due to the economic slowdown and financial crises they are not expecting the same rate of growth and production in 2012. This is quiet natural and in such a situation, keeping a lower target is very much appreciable.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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