New CEO: Siemens Automation & Drives seeks larger presence in U.S.
Orlando, FL—Siemens Automation & Drives is the global automation leader and is pursuing broader recognition in the U.S., according Dennis Sadlowski, who assumed the role of president and CEO of Siemens Energy & Automation as of July 1.
Orlando, FL — Siemens Automation & Drives is the global automation leader and is pursuing broader recognition in the U.S., according Dennis Sadlowski, who assumed the role of president and CEO of Siemens Energy & Automation as of July 1. Sadlowski, who succeeds Aubert Martin (retired), says Siemens A&D has increased more in sales since 2005 than the total sales of Rockwell Automation and the company will pursue higher profile marketing in the U.S. so more people know it. For more numbers, see below.
Sadlowski made the comments to analysts and media at the opening of the 2007 Siemens Automation Summit , in June, a meeting for end users, prospects, and partners. Organized by end-users and supported by Siemens and partners, the event includes more than 150 sessions, and more than 860 attendees. The Solutions Showcase was a 27,000 square foot hall featuring 30 Solutions Partner exhibits as well as products from Siemens Energy & Automation and the newly acquired UGS PLM Software.
The company seeks to “Americanize the Siemens name” with higher profile marketing and broader-based advertising, including a 12-year cooperative agreement with Disney. That Disney deal, Siemens says, includes corporate entertainment space for Siemens in Epcot, laser-based logo at the end of its nightly fireworks, lights, and music show, and Disney’s commitment to purchase $100 million in Siemens’ products and services. Disney engineers were among conference speakers. Other points from Sadlowski include the following.
Automation and Drives division has 24/7 online access to a portfolio of 137,000 products.
Research and development investments totalling around 6% of sales, is spent on R&D, over $1.1 billion this past year, eight to 15 times the total that some competitors spend, to expand profits, portfolio, and market share.
Siemens has 460,000 employees in 190 countries, with more than $100 billion in sales over 10 key businesses, of which the Automation and Drives group is one. In the U.S., Siemens is over $20 billion, with 70,000 employees in 50 states. In revenue, Siemens is first (revenue growth) in factory automation, third in process automation, second in electrical equipment for buildings.
Siemens Energy & Automation includes automation and motion, power conversion, power distribution, residential products, metals technologies, process solutions, electrics assembly systems, and postal automation divisions. Four centers of competence are automotive and aerospace; food and beverage; oil and gas; and chemical and pharmaceutical. Since 2000, growth through acquisitions includes Lumiflex, Applied Automation, Milltronics, Moore Products, Orsi, MCS Vickers, Danfoss, Flender, Robicon, RVSI Acuity, Electrium, Controlotron, and UGS Corp.
Sadlowski emphasized that Siemens leads with full systems and installations in many hot-topic technologies that others are only beginning to tout, such as wireless, RFID, machine vision, MES, and others. New NEMA motors offer up to a 50% energy savings when using a variable frequency drive and an electric motor. Siemens powers the largest liquid natural gas (LNG) compressors for Qatar Gas. A $185 million order includes Robicon Perfect Harmony drive, extremely efficient, and part of a seven-year, no-shutdown plan.
Recent expansions in U.S. operations include $7.2 million in the New Kensington, PA, plant large motor facility, with a 40,000 square foot addition. At the end of May that plant employed 470 people for production of water cooled drives and variable frequency drives. The Norwood, OH, plant (113,000 square feet) will receive $30 million to refurbish and expand over three years.
As for the comparative numbers, Sadlowski cited Siemens A&D sales of 9.844 billion euro in 2005, 12.848 in 2006, and 7.101 billion in fiscal year 2007, for six months through March 31, 2007, unaudited. He said: “Analysts love to compare us to Rockwell Automation. In 2005 Siemens A&D was just under 10 billion [euro] in sales. We’ve added 4.5 billion since then, more than all of Rockwell Automation.” Parallel numbers follow.
Siemens A&D sales numbers above, converted to dollars at July 2 exchange rate from European Central Bank & Currency Source:
2005 sales, $13.38 billion; 2006 sales, $17.46 billion; 2007 sales for first six months, $9.65 billion (4.5 billion euro added is $6.11 billion)
Rockwell Automation sales for comparable periods are, according to year-end 2006, and Q207 news releases:
2005 sales, $5.003 billion; 2006 sales, $5.561 billion; 2007 sales for the first six months, $2.353 billion
For other news from the meeting see:
See a photo of Sadlowski and read more about him and Martin: