(Updates with cash pile from third paragraph.)
Sept. 26 (Bloomberg) -- Siemens AG Chief Executive Officer Peter Loescher said the German maker of trains, scanners and power plants is seeking acquisitions for its main businesses and that valuations are becoming “more attractive by the day.”
“We are looking at the core area of our businesses,” Loescher said. “The cash pile is certainly an advantage in this time.”
Siemens had $18.87 billion in cash at the end of its latest fiscal quarter, among the highest at companies in Europe. Both Loescher and Chief Financial Officer Joe Kaeser indicated Europe’s largest engineering company will wait for valuations to decline before spending some of Siemens’ cash on acquisitions. It has been shying away from acquisitions in the past few quarters to avoid overpaying, as rivals including ABB Ltd. and Schneider Electric SA have spent billions on takeovers.
Loescher has vowed to turn the Munich-based company into an enterprise with 100 billion euros in sales. Revenue will likely decline to 73.32 billion euros in the fiscal year ending Sept. 30, according to a Bloomberg survey, as Siemens declared its lighting business Osram a discontinued operation and sold a computer-services unit.
There are signs of an economic slowdown, Loescher said in a Sept. 24 interview with Bloomberg-UTV in New Delhi. Still, the company’s order book is at a record, driven by the need for energy and health-care equipment as well as gear to automate manufacturing, he said.
--Editors: Andrew Noel, Jerrold Colten
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