SIE Siemens N Ord

RNS Number:4506H
Siemens AG
25 July 2001

Siemens in the third quarter (April 1 to June 30) of fiscal 2001

- Siemens earned EUR1.608 billion in net income including Infineon and special
items.

- Special items include a EUR3.459 billion pretax gain on the irrevocable
transfer of Infineon shares into Siemens' domestic pension trust and a EUR292
million write-down related to a major contract cancellation.

- Net income excluding Infineon and these special items after taxes was a
negative EUR489 million.

- ICN and ICM posted restructuring-related expenses of EUR790 million.

In the third quarter of fiscal 2001, Siemens' sales excluding Infineon climbed
23% to EUR20.265 billion for the quarter, and orders also rose 23% to EUR23.154
billion. Including Infineon, sales and new orders rose 19% and 13%, to EUR21.360
billion and EUR23.718 billion, respectively. Siemens earned EUR1.608 billion in
net income including Infineon and special items. Net income excluding Infineon
and these special items after taxes was a negative EUR489 million.

Siemens recorded mixed results in a weakening economic environment. Several
operating Groups, including Power Generation, Medical Solutions, and
Transportation Systems, posted sizable earnings gains. Sharp declines in demand
and increased pricing pressures particularly in the Information and
Communications businesses, however, led to operating losses, charges, and
impairments that more than offset these successes.

The business groups IC Mobile as well as IC Networks posted special items
totaling EUR790 million in the third quarter. These reflect
restructuring-related expenses such as inventory write-offs and capacity
adjustments as well as write-downs for receivables. IC Networks is planning even
more comprehensive adjustments in its cost structure and business portfolio.

Net income for the first nine months (October 1, 2000 - June 30, 2001),
excluding Infineon and special items, fell to EUR652 million from EUR1.413
billion in the same period a year earlier. EBITA from Operations decreased 26%,
from EUR1.959 billion in the first three quarters of the prior year to EUR1.459
billion in the current year. Siemens posted an 18% gain in sales to EUR58.586
billion for the nine-month period, while orders increased even faster, from
EUR54.493 billion to EUR67.210 billion year-over-year. For the nine-month
period, net income for Siemens Worldwide excluding special items was EUR651
million, down from EUR1.872 billion in the same period a year earlier. Sales and
orders climbed 16% to EUR62.460 billion and 17% to EUR70.315 billion,
respectively.

It appears that the global economic environment will continue to be difficult
over the next few months. Independent of these factors, in the coming months
Siemens' priorities are further restructuring of the I&C Groups and integrating
the acquisition of Atecs. Taking these factors into account, Siemens expects
that net income for fiscal 2001 will be below last year's level. The company
sticks to its earnings targets for 2003. The steps Siemens is taking to achieve
this are combined under the title 'Operation 2003.'

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jun 2024 to Jul 2024

Siemens N Ord (LSE:SIE)
Historical Stock Chart
From Jul 2023 to Jul 2024