A new aggressiveness at Siemens

Article Abstract:

Siemens AG, a West German electronics giant known for its conservative management, is acquiring companies, expanding into the US and working with IBM to develop advanced computer memory chips in a most untraditional and unconservative manner. Siemens, the largest electronics company in Western Europe, is using a new strategic plan to strengthen its position in international markets and high-technology fields. Siemens reports a net profit of $848 million on sales of $33 billion for FY 1989. Siemens has consistently held large amounts of cash in reserve; only since 1988 has it used those reserves to purchase other companies. Since 1988 Siemens has individually or jointly taken over Plessey Co, IN2 SA, Nixdorf Computer AG, Bendix Electronics Group and the production divisions of Rolm Co. At the end of 1989, Siemens had liquid assets of 21.2 billion marks, or about $11.5 billion.

Semiconductor industry, Industrial research, Management Style, Research and Development, Companies, Strategic Planning, Competition, Acquisition

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Siemens buying 51% of Nixdorf; computer innovator is saved by merger in West Germany

Article Abstract:

Siemens AG announces it will acquire a 51 percent stake in the financially troubled Nixdorf Computer AG and will merge the two companies' data processing and information technology business into Siemens-Nixdorf Informationsysteme AG. Nixdorf's shares are not publicly traded, so their exact value is unknown, but analysts expect Siemens will pay around $595 million for control of the company. The deal will give Nixdorf access to Siemens' resources, giving Nixdorf time to restructure. Through the deal, Siemens will gain a stronger position in the computer industry for the opening of the Common Market in 1992. Siemens will also gain much needed strength in the software market.

Electronic parts and equipment, Planning, Mergers, acquisitions and divestments, Electronics industry, Business planning, Merger, Financial Stability, Siemens-Nixdorf Informationssysteme AG

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Computer maker's glamour fades

Article Abstract:

Nixdorf Computer AG, the computer company, posts a $152 million loss in the first half 1989, and the German press blames Chmn Klaus Luft. Luft defends himself, pointing to high costs and fierce competition in a changing market. Luft plans several moves: a management restructuring; cost cutting; overseas expansion; and increased focus on software and services. Founder Heinz Nixdorf's established a strategy of aggressive expansion. The company was slow to abandon that strategy, even when conditions changed. Nixdorf's sales for the first half of 1989 are up five percent from the previous year.

West Germany, Germany, West, Losses, Luft, Klaus

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