Siemens (XTER:SIE, Financial) (Germany) is an industrials conglomerate that provides technology solutions for automation and digitalization to customers across the globe. We appreciate the company’s efforts over the past several years to consolidate its business into three focused areas: digital industries, smart infrastructure and mobility. We think this has improved the company’s execution and resulted in greater than market growth, project charge eliminations and solid cash flow generation. In addition, the company’s leading automation hardware and software offerings create a scarce asset that aligns digitization tailwinds, in our estimation. We see opportunities for the company to close its profitability gap in key business units, providing potential value for shareholders.
From David Herro (Trades, Portfolio)'s Oakmark International Fund first-quarter 2022 commentary.
