At its 50th annual shareholders’ meeting held on Tuesday at Olympiahalle in Munich, Siemens officially unveiled its newly invigorated brand under the all-encompassing tagline, “Ingenuity for life.” This came on the heels of two galvanizing Monday announcements: Siemens raised earning-per-share outlooks from a previously projected €5.90-€6.20 (US$6.42-$6.74) to €6.00-€6.40 (US$6.52-$6.96), and also confirmed a $970 million acquisition of the American simulation software provider, CD-adapco.
The German contender in the global industrial market has been revitalizing its brand since the launch of its Vision 2020 strategy for aligning the organization while outpacing industry competitors. Aligning the brand to achieve business objectives serves to gird Siemens’ wealth of offerings—which range from healthcare to energy, automation and transportation—under a singular vision.
A household name, the 200-year-old company also delivered the first electric rail, installed transatlantic cables, supported off-shore wind factories, introduced new connected and electric car technologies and is currently developing smart grids for future cities. “Ingenuity for life” sums up Siemens’ comprehensive new mission statement:
“We make real what matters, by setting the benchmark in the way we electrify, automate and digitalize the world around us. Ingenuity drives us and what we create is yours. Together we deliver.”
Siemens looks to realize its vision by focusing on future-oriented fields—prioritizing electrification, automation and digitalization—especially as the industrial market is threatened by lagging growth in China and low oil prices. The automation software that Siemens will acquire under CD-adapco is used by 14 of the 15 largest auto manufacturers, as well as by aeronautics and energy companies.
According to President and CEO Joe Kaeser, Siemens’ 2015 investment in restructuring and growth will be reflected in 2016 developments. In the first quarter of the new fiscal year (which ran from October to December), net profits rose a striking 42 percent—despite slowed global economies and geopolitical upheaval—which sparked elevated earnings estimates for 2016.
“These developments are gratifying. We have become more open and more efficient. The awareness of continuous change is more pronounced than ever before,” said Kaeser in his speech to shareholders.
2016 will be a “year of optimization” for Siemens, which is investing an additional €1 billion (US$1.09 billion) in growth this year, funneling a total of €17 billion (US$18.48 billion) into sales, property, plant equipment, productivity, and research and development.
Janine Stankus is a New York-based content editor for Interbrand.