Siemens has shelved plans to float its lighting business, Osram, on the stock market and instead will spin off the company early next year, according to its chief executive Peter Loescher .

The company's net profit of Euro 823 million, missed analysts' estimates of Euro 1.32 billion, due to an accounting charge relating to Osram.

Peter Loscher said at his third quarter earnings conference call, “Since market conditions continue to be volatile for an IPO, we have decided to pursue a spin-off to our shareholders as the most probable part of divestiture. This proposal requires shareholder approval at the next AGM in [early] 2013, and Siemens still intends to remain as anchor shareholder in Osram.”

In addition, Loscher warned demand from China was slowing and said he doesn't expect recovery until 2013 at the earliest. “Our focus above all is on increasing our productivity and efficiency,” he added.