Aftershocks of Brexit and the US elections will impact the 2017 revenues, compelling the European engineering giant to derivate its healthcare ventures while the shares are on a high.
Market statures of companies with an enlarged global network are seldom affected by the undulating ripples of changing politics and altering business policies and regulations taking place in a particular part of the world. Inopportunely, Siemens AG will also have to adapt its operation with accordance to the fluctuating environment of global economy. Deemed to be Europe’s largest engineering company, Siemens has alerted its stakeholders for anticipating an indefinite impact of Brexit and the US elections on its revenues. The Germany-based conglomerate has cautioned people interested in its growth that the 2017 revenues will incur considerable variation, which is more likely to be adverse than profitable.
Presently, Siemens shares have acquired a 16-year high, sustenance of which is not being guaranteed for the year 2017; even by the industrial conglomerate itself. After peaking profits in the 2016 fiscal year, Siemens has plans to broaden the horizons of its healthcare businesses before they get constrained from off shoots of Brexit and the US elections. The UK’s exit from the European Union worries Joe Kaeser, the CEO of Siemens, who also is projecting that the US President-elect Donald Trump might amend several healthcare policies and hamper the company’s rapport and collaborations with North American pharmaceuticals and healthcare corporations. The CEO also fears that Brexit does not influence the political divide in the US and induce exit polls among the 50 States themselves.
In 2016, Siemens continues to experience surging growth in businesses from the power & energy industrial vertical. For profits earned through healthcare venture, Siemens’ Healthineers reported favorable increment in its revenues through operating profits. The unit is known for production of medical scanners and diagnostic tools, and is likely to be valued over € 20 billion. Embarking upon its Vision 2020 strategy, Siemens is likely to focus on trailing growth in its healthcare businesses through flexibility, which it will orchestrate by annexing them.