German manufacturing company Siemens will split off its IT Solutions and Services business by 1 July 2010 to form a separate unit, it has been reported.

In an interview with the Wall Street Journal, CFO Joe Kaeser said: “All options for the unit remain open, including an IPO or a joint venture.”

Analysts also expect to see a restructuring of the business, where a profit margin of 6.3 per cent in 2009 was far below expectations of 11 to 15 per cent.

The company recently revealed the group's fourth quarter results which saw a decrease on Siemens 50 per cent stake in Nokia Siemens Networks (NSN) which contributed significantly to its reported €1.98bn loss on equity investments. The company posted a fourth quarter net loss of $1.65bn which has been said to have contributed to the condensation of its IT solutions division.

Siemens have attributed this loss to a significant market deterioration resulting from reduced operator spending and tough competition from Chinese vendors. Siemens also posted a 25 per cent rise in operating profit, which was higher than expected.