Siemens earnings up as US, China sales soar
29 July 2004, MUNICH - German electrical engineering giant Siemens issued sunny figures Thursday, saying strong sales in the United States and China had helped it to raise its operational earnings in the past quarter by 21 percent.
29 July 2004
MUNICH - German electrical engineering giant Siemens issued sunny figures Thursday, saying strong sales in the United States and China had helped it to raise its operational earnings in the past quarter by 21 percent.
The figure, EUR 1.2 billion, exceeded most analysts' expectations for the third quarter of the Siemens business year ending 30 September. Sales rose for the first time in two years, gaining 5 percent year on year to EUR 18.2 billion.
"Based on this, I am confident we can exceed our own target for the full year," said chief executive Heinrich von Pierer in Munich.
Post-tax earnings were up 29 percent to EUR 815 million. Past forecasts from Siemens had been only of "double-digit" percentage growth in net earnings excluding one-off effects.
For the first nine months of the Siemens year, the net was up a robust 60 percent to EUR 2.75 billion, though that figure does include EUR 400 million in one-off effects.
At a news conference in Munich, Siemens declared it was coming to a resolution of one of its biggest crises, the recall of its Combino electric trams, which are on the streets of cities around the world.
The discovery that the trams' upper frames were too weak and unable to withstand years of bumping led to fears that the whole series might have to be scrapped, but Siemens has devised an economical way to strengthen them.
The mass-transport division declared a loss of EUR 48 million for the quarter.
Industry sources say the company has been able to reduce its third-quarter write-off provisions for the Combino programme to just EUR 20 - 30 million, far less than most observers expected.
In the previous quarter, Siemens wrote a loss of EUR 289 million for the division, largely because of extraordinary items of EUR 364 million which were essentially related to the Combino crisis.
Subject: German news