Siemens profits drop amid cell phone problems

27th April 2005, Comments 0 comments

27 April 2005, MUNICH/LISBON - German electrical engineering concern Siemens reported on Wednesday that its net income in the second quarter of fiscal 2005 fell to EUR 781 million, amid further problems at its mobile-phone unit.

27 April 2005

MUNICH/LISBON - German electrical engineering concern Siemens reported on Wednesday that its net income in the second quarter of fiscal 2005 fell to EUR 781 million, amid further problems at its mobile-phone unit.

Sales in the second quarter came to EUR 18.6 billion, up 4.3 percent from the January-March 2004 period. New orders, at almost EUR 20.7 billion, were up 5 percent from the previous-year period.

While issuing figures in Munich on its website, Siemens chief executive Klaus Kleinfeld in a presentation in Lisbon announced plans to divest its mobile phone operations, with the company seeking cooperation with an external partner.

Industry sources said potential partners were Motorola and the Taiwanese company Acer.

The January-March quarterly net income was well down from the EUR 1.21 billion a year earlier, a figure which at the time reflected the proceeds from Siemens' sale of the chip company Infineon.

Siemens' mobile phone unit lost EUR 138 million in the January- March quarter, roughly the same red-ink result as in the preceding two quarters.

Analysts say Siemens is losing market share in the mobile phone market after being to slow in introducing new-tech features such as music players or high-speed Web access.

DPA

Subject: German news

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