Siemens' Exit from Nuclear Energy Is Credit Positive - Moody's Global Credit Research

Siemens' Exit from Nuclear Energy Is Credit Positive

Siemens' Exit from Nuclear Energy Is Credit Positive - Moody's Global Credit Research
Siemens' Exit from Nuclear Energy Is Credit Positive
Published Sep 25, 2011
3 pages (1696 words) — Published Sep 25, 2011
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Brief Excerpt:

...Siemens AG (A1 positive) Chief Executive Peter Loescher last Monday said that the company's "chapter in nuclear energy is closed," and that it will scale back its cooperation with Russia's Rosatom (unrated) to the delivery of conventional power equipment only. The decision is credit positive for Siemens for three reasons. First, financial returns on this complex technology are risky as during the construction phase customers often expand safety specifications, which then may trigger disputes between suppliers and clients. Second, research and development (R&D) requirements are high at a time when future demand for new facilities is increasingly uncertain owing to recent safety concerns (e.g., Japan's Fukushima nuclear accident) and political intervention. Third, the exit frees up funds that Siemens can redeploy in businesses with better visibility, like power transformation. At this stage, it is unclear to what extent Siemens can monetize the patents and other know-how in nuclear technology...

  
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Issuer Comment

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Siemens Aktiengesellschaft
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Siemens's Acquisition of Expro's Connectors and Measurement Unit Is Credit Positive - Issuer Comment – 2012/03/25 – US$ 200.00 – ...Last Tuesday, Siemens AG (A1 positive) said it would buy a connectors and measurements unit of Britain's Expro Holdings UK 3 Limited (Caa1 negative) that specialises in underwater power cables for the oil and gas industry for an enterprise value of approximately 470 million ($630 million). The acquisition, whose price tag implies a revenue multiple of around 5x, is credit positive for Siemens as it adds missing key elements to its portfolio, enabling it to offer integrated and complete subsea power grid solutions. Although Siemens has not disclosed financial details of the transaction, which is subject to regulatory approval, we expect the impact of the acquisition on the company's credit metrics will be marginal and that it will not affect Siemens's rating and outlook. Our estimated pro forma ratio of retained cash flow to net debt is in the 90s-percent range, versus 101% for the 12-month period ended in December 2011. The acquisition offers a wide range of synergies for Siemens. The connectors...

Expro's Sale of Its High Growth Connectors & Measurements Business Is Credit Negative - Issuer Comment – 2012/03/25 – US$ 200.00 – ...Last Tuesday, Expro Holdings UK 3 Limited (Caa1 negative) announced the sale of its Connectors & Measurements (C&M) business to Siemens AG (A1 positive) at a valuation of $630 million. This disposal is credit negative for Expro as it will remove its best-performing business, and one that we expect has the highest potential for growth. The sale also leaves Expro more exposed to competition from the major oil service companies, such as Schlumberger Ltd. (A1 stable), Halliburton Company (A2 stable), and, to a lesser extent, Baker Hughes Incorporated (A2 stable) and Weatherford International, Inc. (Baa2 stable), all of which are able to offer bundled or integrated services and have stronger capital bases. The C&M business provides a range of high-integrity subsea electrical power, data connection and wellhead pressure and temperature sensor systems used in the development of offshore oil wells. C&M is a market leader, with Teledyne Technologies Inc. (unrated) the only other significant player...

Moody's assigns A1 rating to Siemens' bonds with warrants; positive outlook - Rating Action – 2012/02/09 – US$ 180.00 – Global Credit Research Rating Action 9 FEB 2012 Rating Action: Siemens Aktiengesellschaft Moody's assigns A1 rating to Siemens' bonds with warrants; positive outlook Approximately USD3.0 billion of senior bonds with warrants to be...

Siemens Aktiengesellschaft - Analysis – 2011/02/08 – US$ 750.00 – ...Headquartered in Munich, Germany, Siemens AG (Siemens; A1/P-1/stable) is a diversified global electrical engineering and electronics group. With total sales of around 76 billion in the financial year ended 30 September 2010 (FYE 2010), Siemens is Europe's largest electronics and electrical equipment group, and ranks as one of the 20 largest enterprises in Europe. Its 86 billon market capitalisation, as of the 31 January 2011, represents book equity of around 3x as of FYE 2010. Siemens' activities are grouped into three sectors: (i) Industry (46% of group revenues), offering a complete spectrum of solutions for efficient use of resources and productivity improvements in industry and infrastructure; (ii) Energy (34% of group revenues), covering the whole energy conversion chain from extraction of oil and gas to transmission and distribution of power; and (iii) Healthcare (16% of group revenues), offering a comprehensive portfolio of medical solutions ranging from medical imaging to clinical...

Siemens Aktiengesellschaft - Analysis – 2010/02/02 – US$ 750.00 – ...Headquartered in Munich, Germany, Siemens AG (A1/P-1/stable) is a diversified global electrical engineering and electronics group. With total sales of around 77 billion in the financial year ended 30 September 2009 (FY2009), Siemens is Europe's largest electronics and electrical equipment group, and ranks as one of the 20 largest enterprises in Europe. Its 60 billon market capitalisation, as of the end of January 2010, represents around 2.2x book equity and 10.3x adjusted EBIT....

Siemens Aktiengesellschaft - Analysis – 2009/03/18 – US$ 750.00 – ...Headquartered in Munich, Germany, Siemens AG (A1/P-1, stable) is a diversified global electrical engineering and electronics group. With total sales of around 77 billion in the financial year ended 30 September 2008 (FY2008), Siemens is Europe s largest electronics and electrical equipment group, and ranks as one of the 20 largest enterprises in Europe. Its 39.5 billon market capitalisation, as of 2 February 2009 and down 52% from a year ago, represents around 1.5x book equity and 9.6x adjusted EBIT. During FYE2008, management has reallocat ed its activities into three Sectors Industry (49% of group revenues), Energy (29%) and Healthcare (14%) made up of 14 Divisions, while keeping Financial Services and IT Solutions and Services separate as cross sector businesses. Ea ch Sector and Division has a dedicated CEO and CFO. In its industrial operations, Siemens general ly ranks among the top three suppliers in the markets it operates in, and its ma ny competitors include...

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MLA:
Moody's Global Credit Research. "Siemens' Exit from Nuclear Energy Is Credit Positive" Sep 25, 2011. Alacra Store. Jan 21, 2021. <http://www.alacrastore.com/moodys-credit-research/Siemens-Exit-from-Nuclear-Energy-Is-Credit-Positive-PBC_136247>
  
APA:
Moody's Global Credit Research. (). Siemens' Exit from Nuclear Energy Is Credit Positive Sep 25, 2011. New York, NY: Alacra Store. Retrieved Jan 21, 2021 from <http://www.alacrastore.com/moodys-credit-research/Siemens-Exit-from-Nuclear-Energy-Is-Credit-Positive-PBC_136247>
  
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