Short piece out on Reuters this morning (”Siemens to regroup international operations“) citing a German daily newspaper that Siemens is in the process of restructuring its international operations into 20 regional centers:

ABB, my favorite power grid and automation infrastructure stock, got taken down by Seimens’ unexpected profit warning on March 17th. Siemens warned that it’ll miss current quarter earnings by $1.4 Billion after having given a positive outlook in January. The warning caused a 17% slashing of Siemens’ stock (which was warranted) but ABB caught a ricochet piece of shrapnel and traded down to $23.73 at one point on March 17th, some 9% below the $26 area where it closed the day before. But ABB has already bounced back like a champ, touching $25.4 on Tuesday’s trading.

Whoever was dumping ABB shares obviously do not understand that Siemens’ problems benefits ABB. The Siemens’ organization has been a structural mess for the past few years, even having its corporate office raided by government investigators a while ago. These problems are specific to Siemens.