Siemens plans major restructuring

Promising a new corporate culture and a "rigorous pruning" of underperforming businesses, Siemens AG Chief Executive Heinrich von Pierer said the company will fall short of its DM3 billion ($1.68 billion) earnings target for the year ending Sept. 30. Siemens already announced plans to sell its power cable operations to Pirelli SpA for DM500 million ($279 million). Mr. von Pierer tells analysts the company also has "acute difficulties" in its semiconductor, power-station construction, transportation technology, mobile phone and retail communications units.