Siemens's

The new division would include Siemens's mobility, building technologies and power distribution subdivisions—which include businesses such as the company's smart-electricity-grid activities—as well as Osram as it prepares that business for the IPO, the company said.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

The aim, he said in a statement, was to spur faster growth and push Siemens's business volume past €100 billion $141 billion within a few years, from €76 billion in sales last fiscal year.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

Then, Siemens's broad array of businesses, which range from high-speed trains to medical-imaging equipment to wind turbines and power plants, were recarved into three main divisions: industry, energy and health care.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

Osram, which trails only Royal Philips Electronics NV in sales in the lighting industry, is one of Siemens's more profitable businesses, generating a profit of €569 million$802 million last fiscal year on revenue of €4.7 billion.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

Growth is back at the top of Siemens's agenda, but not before a last bout of restructuring.

Siemens Lightens Up for New Growth Phase Matthew Curtin 2011

That means Siemens's new plan has left investors cold.

Siemens Lightens Up for New Growth Phase Matthew Curtin 2011

But within the company and among many investors, the industry division—which employs 200,000 people and generated nearly half of Siemens's total revenue last year—has been considered too vast and unwieldy to manage efficiently.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

Michael Süss , head of its fossil-power generation division, will take over Siemens's energy division, succeeding Wolfgang Dehen , who will leave the board to become Osram's chief executive.

Siemens Overhaul Includes Unit Spinoff Vanessa Fuhrmans 2011

But Siemens's return on capital employed at its core operations has improved to 13% in fiscal year 2010 from 6.2% in 2008.

Siemens Lightens Up for New Growth Phase Matthew Curtin 2011

But setting an ambitious medium-term revenue target of €100 billion $141 billion, 25% above last year's revenue, may unsettle investors who have rather liked Siemens's focus on improving returns rather than growth for growth's sake.

Siemens Lightens Up for New Growth Phase Matthew Curtin 2011