Siemens carves out energy unit, cuts 10,000 jobs in massive overhaul

Munich

SIEMENS AG posted strong second-quarter profit and outlined a plan to list its struggling power and gas division, a watershed moment in chief executive officer Joe Kaeser's drive to dismantle the company's cumbersome conglomerate structure.

The shares surged the most in a year after the German company said adjusted earnings before interest, taxes and amortisation from its main industrial business rose 7 per cent to 2.41 billion euros (S$3.7 billion). That beat an average analyst estimate of 2.23 billion euros compiled by Bloomberg. Order growth at the health-care Healthineers unit and strong returns at the digital factory division, which supplies plant-automation services, helped drive profits.