RNS Number:4487H
Siemens AG
25 July 2001
FULL DETAILS
Part 1
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 ended June 30, Siemens recorded mixed
results in a weakening economic environment. While several operating Groups
posted sizable earnings gains, others began restructuring in the face of sharply
reduced demand, particularly in the Information and Communications business
area. Overall, however, the company remains committed to previously announced
EBITA targets for 2003. "Our third quarter earnings are unsatisfactory," said
Siemens CEO Heinrich v. Pierer. "Over the coming weeks we will define further
measures to improve our results, particularly at Information and Communication
Networks. This prepares the way for us to achieve our medium-term earnings
targets despite the weakness in our markets. 'Operation 2003' is fully under
way."
Excluding Infineon, sales 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. These results include approximately EUR1.7 billion in sales growth
from the acquisitions of SMS, Acuson, Atecs Mannesmann AG and Efficient
Networks, all acquired since the end of the third quarter a year ago.
Together with the quarterly Press Release, Siemens for the first time is
presenting and commenting on a full set of financial statements, including
three-month and nine-month income statements, balance sheet, cash flow statement
and full segment information.
Operations in the third quarter of fiscal 2001 (excluding Infineon)
A number of Siemens operating Groups, including Power Generation, Medical
Solu-tions, and Transportation Systems, turned in substantial earnings
improvements during the quarter. 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. Earnings before interest, taxes and goodwill amortization
(EBITA) for Operations decreased to a negative EUR479 million compared to a
positive EUR592 million in the same quarter a year earlier.
The Information and Communications business area suffered, along with its
competitors, the effects of adverse market conditions. Information and
Communication Net-works (ICN) faced deteriorating demand particularly among
telecommunications operators and in the important U.S. market. The Group
recorded a negative EBITA of EUR563 million, compared to a positive EUR133
million in the same period a year earlier. Included in this result are EUR420
million in charges. This total includes EUR134 million for inventory write-offs
and capacity adjustments, a EUR45 million impairment of venture capital
investments whose decline in value was determined to be other than temporary,
and a write down of EUR241 million in receivables including those associated
with Winstar Communications. These effects, combined with margin erosion in
certain businesses and a negative EUR74 million EBITA at Efficient Networks,
Inc. (Efficient), which was acquired in the third quarter, contributed to the
Group's earnings decline.
ICN's sales for the quarter grew 19% to EUR3.157 billion, benefiting from the
Group's sizable backlog. In contrast, new orders were flat at EUR2.873 billion.
The business of Efficient, a provider of digital subscriber line (DSL) broadband
access equipment in the U.S., highlights the market's volatility. It experienced
a rapid contraction of its customer base during the quarter in the abrupt
shut-down of operations by a number of previously fast-growing DSL service
providers.
In response to deteriorating market conditions, ICN is planning even more
comprehensive adjustments in its cost structure and business portfolio, and is
intensifying its efforts in working capital management. "The EUR1.2 billion
restructuring program we announced in Spring was ambitious, yet not enough,"
said Pierer. "In the coming weeks we will define further steps to expand this
program to at least EUR2 billion. This expanded program will focus on ICN's
manufacturing capacity worldwide, its business portfolio, and further cost
savings. "
The EBITA decline at Information and Communication Mobile (ICM) was due to
margin erosion and intensified competition in a transitional market for the
industry as a whole. The Group recorded a negative EBITA of EUR511 million.
Included in this amount are charges totaling EUR370 million, primarily for
inventory write-offs and capacity adjustments, and an impairment of EUR69
million related to ICM's 3% investment in Brokat AG. The profitable GSM
infrastructure business delivered a positive operating result of approximately
EUR110 million, which was insufficient to offset the charges above together with
operating losses of approximately EUR180 million in the mobile phone business,
resulting in a loss for the Group overall. "Nonetheless, ICM reacted quickly and
decisively in a difficult market," Pierer noted.
ICM's sales grew 34% to EUR2.543 billion compared to EUR1.894 billion in the
prior year, while new orders grew 12%, from EUR2.624 billion to EUR2.930
billion. This growth was due primarily to continued demand at the Mobile
Networks Division. Mobile phone volumes for the quarter grew to 5.8 million
units from the 5.6 million units sold into distribution in the third quarter a
year ago. An estimated 1.2 million additional units reached consumers from stock
already owned by distributors.
Sales and orders at Siemens Business Services (SBS) both passed the EUR1.4
billion mark in the third quarter. Contract loss provisions in Group's
outsourcing business, particularly in the U.K., were partly offset by a EUR44
million gain on the sale of its investment in SAP SI, resulting in EBITA of EUR7
million. SBS is taking steps to rebalance its capacities in the face of
generally slower demand for IT services and as a result has announced plans to
eliminate 2000 positions, including 1600 in Germany.
Within Siemens' Automation and Control business area, Automation and Drives
(A&D) increased its EBITA to EUR225 million in the third quarter compared to
EUR220 million a year earlier. EBITA margin remained in double figures. Sales
grew 10% compared to a year earlier, but as anticipated new orders were flat
reflecting slowing economic growth, particularly in the U.S. but also in Europe.
Industrial Solutions and Services (I&S) achieved double-digit growth in sales
and orders. Weakness in the Group's plant engineering businesses, however,
lowered its overall EBITA to a negative EUR10 million compared to a loss of EUR6
million in the third quarter of fiscal 2000.
Siemens Dematic (SD) was formed during the quarter via a merger of the existing
businesses of Siemens Production and Logistics Systems (PL) and Dematic AG (part
of the Atecs acquisition). Dematic contributed EUR348 million in sales and
EUR268 million in orders, resulting in totals of EUR721 million and EUR526
million, respectively, for the Group during the quarter. EBITA was a negative
EUR102 million, as substantially reduced capital expenditures in the
semiconductor industry, electronics manufacturing and other sectors sharply
decreased demand for the Electronic Assembly Division's pick-and-place systems,
while demand also weakened in the Postal Automation Division. Profitability was
also impacted by provisions for certain contracts in the Group's project
businesses. At Siemens Building Technologies (SBT), slowing demand for fire
safety and building security solutions combined with margin erosion in Europe
limited the Group's EBITA to EUR40 million. Sales of EUR1.326 billion were 17%
above the level a year earlier.
In the Power business area, Power Generation (PG) was a standout for Siemens as
a whole. PG's sales surged 23% to EUR2.208 billion, and EBITA jumped to EUR197
million. Order growth accelerated to 29%, with EUR3.366 billion in new orders
taking the Group's bulging backlog to EUR27 billion in future business,
including reservations. PG achieved these substantial gains in third-quarter
sales and orders despite the fact that third-quarter results a year ago included
Siemens' nuclear operations, which were spun off into the Framatome ANP joint
venture in the second quarter of this year. The Fossil Power Generation Division
again drove PG's performance. Strong U.S. demand for PG's gas turbine technology
continued, while Europe and Asia began to show renewed growth as well. Currency
translation effects contributed 6% to the Group's sales for the quarter. Power
Transmission and Distribution (PTD) posted EBITA of EUR21 million and 40% sales
growth compared to the prior year, led by the High Voltage Division. Orders grew
16%, led by the Energy Management and High Voltage Divisions. In response to
continued price pressure in the product business of the Metering Division, PTD
initiated a program to rationalize the division's production capacity and
streamline its business processes.
In the Transportation business area, Transportation Systems (TS) won an order
for 1,200 passenger railcars and related maintenance in the U.K., one of the
largest single orders in Siemens' recent history. TS also won a large order for
a fully automatic metro line in Toulouse, France. These contracts pushed new
orders up EUR1.727 billion, to EUR2.432 billion for the quarter, and took the
Group's backlog past the EUR10 billion mark. TS also improved its EBITA from
EUR19 million to EUR48 million.
Siemens Automotive (AT) was reorganized and renamed Siemens VDO Automotive (SV),
as the Group absorbed the VDO automotive operations of Atecs. The addition of
VDO boosted the Group's sales by EUR789 million, resulting in total sales of
EUR1.803 billion in the quarter. Continuing development costs for advanced
diesel injection systems and navigation systems, combined with a charge of EUR35
million associated with the divestment of its wiring harness plants, resulted in
an EBITA of negative EUR60 million.
Medical Solutions (Med) increased its EBITA significantly, to EUR177 million
compared to EUR128 million in the prior year, and maintained its EBITA margin in
double digits. The Group's recent acquisitions, Shared Medical Systems (SMS) and
Acuson, drove Med's 56% increase in sales and 64% increase in new orders
year-over-year, to EUR1.712 billion and EUR1.942 billion, respectively. Currency
translation effects contributed 7% to sales for the quarter. SMS and Acuson
position Med strongly in the high-growth areas of medical services and
ultrasound technology. Among the Group's other offerings, diagnostic imaging
systems and hearing instruments also continue to experience significant growth.
In the Lighting business area, Osram delivered EUR100 million in EBITA. Sales
rose to EUR1.108 billion, including growth in the strategic photo-optic and
optical semiconductor businesses. In response to the slowing economy in the
U.S., which particularly affects its general lighting and automotive lighting
businesses, Osram successfully implemented cost-reduction programs that
preserved operating margins at 9%.
EBITA for Corporate, eliminations was a negative EUR48 million in the third
quarter, compared to a negative EUR297 million in the third quarter a year ago.
Included in Reconciliation to financial statements are the EUR3.459 billion
pretax gain from the irrevocable transfer of Infineon shares and the EUR292
million write-down of assets related to the Argentine outsourcing contract noted
above. Due to recent acquisitions, amortization of goodwill and IPR&D charges
increased to EUR257 million.
Financing and Real Estate in the third quarter of fiscal 2001
Siemens Financial Services (SFS) continued to deliver strong earnings, as
profitable performance at Credit Portfolio Management in the Equipment and Sales
Financing Division was offset by higher loan provisions in the Division's Mid
Market Finance business. Pretax income at Siemens Real Estate (SRE) declined to
EUR48 million compared to EUR58 million in the prior year, mainly due to a
decrease in gains on the disposal of real estate.
Siemens Worldwide results for the third quarter (including Infineon)
Third-quarter net income for Siemens Worldwide (which includes Infineon)
excluding special items was a negative EUR705 million, compared to a positive
EUR628 million a year earlier. Sales and new orders increased 19% to EUR21.360
billion and 13% to EUR23.718 billion, respectively. Third-quarter sales at
Infineon were down 30% to EUR1.277 billion. Infineon's EBIT for the quarter
decreased EUR964 million to a loss of EUR598 million. Infineon released its
third-quarter earnings separately on July 23, 2001.
Nine-month liquidity, capital spending and balance sheet highlights (excluding
Infineon)
At June 30, 2001, cash and cash equivalents for Siemens excluding Infineon stood
at EUR5.088 billion, compared to EUR6.351 billion at the end of fiscal 2000.
Capital spending (excluding Infineon) for the year to date rose to EUR7.029
billion compared to EUR3.893 billion at the same point a year earlier. Of this
total, EUR2.994 billion was spent on property, plant and equipment. The sum of
EUR4.035 billion was spent on acquisitions, primarily Acuson, Atecs and
Efficient, and investments. The corresponding figures for the first nine months
of fiscal 2000 were EUR2.542 billion for property, plant and equipment, and
EUR1.351 billion for acquisitions and investments.
Total assets for Siemens excluding Infineon increased EUR12.182 billion compared
to the prior year's end. The increase is primarily associated with the
acquisition of Atecs, Acuson and Efficient, a prepaid pension asset resulting
from the irrevocable transfer of Infineon shares into the domestic pension
trust, and the impact of overall business growth. The wider market's pronounced
slow-down not only contributed to a deteriora-tion of profitability, but also
had a negative impact on net cash provided in operating activities, which
decreased EUR1.202 billion excluding Infineon compared to June 30, 2000.
Continued divestment of assets held for sale from the Atecs acquisition are
expected to positively impact liquidity in the coming quarters.
Siemens' results for the first nine months (excluding Infineon)
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. Currency translation effects contributed 3% to
orders and sales for the first nine months, and acquisitions including SMS,
Atecs, Acuson and Efficient contributed approximately EUR2.6 billion.
Siemens Worldwide results for the first nine months (including Infineon)
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.
Nine-month trends in international activities (excluding Infineon)
International activities continued to dominate the company's business in the
first nine months. Orders in Germany increased 11% to EUR13.607 billion from
EUR12.243 billion in fiscal 2000. International orders rose faster, from
EUR42.250 billion in the first nine months a year ago to EUR53.603 billion in
the first nine months of the current year, an increase of 27%. Sales in Germany
grew 3% to EUR12.870 billion, while international sales rose 23% to EUR45.717
billion. International business now accounts for almost 80% of Siemens' total
volume.
Orders in the U.S. for the first nine months climbed 44% to EUR17.448 billion
and sales rose 36% to EUR14.160 billion. In Asia-Pacific, orders rose 28% to
EUR8.023 billion and sales 35% to EUR6.916 billion. China continued to account
for the largest share of sales in the region, contributing EUR2.510 billion. In
Europe outside Germany, orders and sales increased 17% and 9%, respectively.
Outlook and subsequent events
It appears that the global economic environment will continue to be difficult
over the next few months. In some emerging markets, there are certain additional
risks. Independent of these factors, in the coming months Siemens' priorities
are further restructuring the I&C groups and integrating the acquisition of
Atecs.
"Taking these factors into account, we expect that net income after taxes for
fiscal 2001 will be below last year's level," Pierer said. "We are sticking to
our earnings targets for 2003. The steps we are taking to achieve this are
combined under the title 'Operation 2003'."
Subsequent to the close of the third quarter on June 30, 2001, certain events
took place that may have an affect on Siemens' financial or operating position.
These events include the following:
- In July 2001, Infineon raised new capital through the issuance and sale of 60
million shares of stock. Siemens did not participate in this offering, which had
the effect of reducing Siemens' stake in Infineon from 56% to 51%.
- In July 2001, the FASB published Statement 141, Business Combinations, and
Statement 142, Goodwill and Other Intangible Assets:" Statement 142 changes the
accounting for goodwill. The practice of amortizing goodwill, including
good-will recorded in past business combinations, will cease upon adoption of
the Statement. In anticipation of Siemens' adoption of Statement 142 in fiscal
2002, Siemens is assessing its potential impact and preparing for early adoption
of the new rule.
- In July 2001, Siemens announced the sale of Mannesmann Plastics Machinery AG
to Apax Funds. The sale is subject to review by regulatory authorities. It is
expected to close in the fourth quarter of fiscal 2001.
Notice:
- A telephone conference for journalists with CEO Dr. Heinrich v. Pierer and CFO
Heinz-Joachim Neuburger will be transmitted live on the Internet beginning at
8:00 a.m. You can access the conference at www.siemens.com. Please go to the Web
site early enough to download software, if needed. A recording of the telephone
conference will be available later at the same location.
- Dr. v. Pierer and Mr. Neuburger will hold a telephone conference with analysts
at 3:00 p.m. and you can also follow the conference live on the Internet. Please
go to www.siemens.com under the heading 'Investor Relations.'
This interim report contains forward-looking statements based on beliefs of
Siemens' management. The words "anticipate," "believe," "estimate," "forecast,"
"expect," "intend," "plan", "should" and "project" are used to identify
forward-looking statements. Such statements reflect the company's current views
with respect to future events and are subject to risks and uncertainties. Many
factors could cause the actual results to be materially different, including,
among others, changes in general economic and business conditions, changes in
currency exchange rates and interest rates, introduction of competing products,
lack of acceptance of new products or services and changes in business strategy.
Actual results may vary materially from those projected here. Siemens does not
intend or assume any obli-gation to update these forward-looking statements.
Siemens AG
Corporate Communications Informationsnummber: AXX200107.36 e
Press Department Stefan Denig
80312 Munchen 80312 Munchen
Tel:+49-89 636-32392; Fax: 32825
Email: stefan.denig@cc.siemens.de
KEY FIGURES
3rd quarter (1) first nine months (2)
2001 2000 2001 2000
Net income (3) 1,608 267 3,186 8,298
(in millions of euros)
Special items (before taxes) 3,167 (580) 3,167 7,888
(in millions of euros)
Net income (excluding Infineon and (489) 439 652 1,413
special items)
(in euros)
Earnings per share (excluding
Infineon and special items) (4)(5) (0.55) 0.49 0.74 1.59
(in euros)
EBITA from Operations (excluding
Infineon) (479) 592 1,459 1,959
(in millions of euros)
New Orders (excluding Infineon) 23.1 18.8 67.2 54.5
(in billions of euros)
Sales (excluding Infineon) 20.3 16.5 58.6 49.7
(in billions of euros)
June 30, 2001 Sept. 30, 2000
Employees (excluding Infineon) (in thousands) 464 419
Germany 183 167
International 281 252
(1) April 1, 2001 - June 30, 2001
(2) October 1, 2000 - June 30, 2001
(3) Net income under U.S. GAAP per the attached consolidated statement of
income and including Infineon and special items
(4) Basic earnings per share under U.S. GAAP for siemens including Infineon:
3rd quarter EUR1.81 (2000: EUR0.30), first nine months EUR3.60 (2000:
EUR9.31)
(5) Reflects stock split (one additional share for two existing shares)
effective April 30, 2001.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the three months ended June 30, 2001 and June 30, 2000
(in millions of EUR, per share amounts in EUR)
Eliminations
reclassifica-
Siemens worldwide tions and
Corporate
Treasury Operations
2001 2000 2001 2000 2001 2000
Net sales 21,360 18,025 (777) (790) 20,331 16,534
Cost of sales (16,395) (13,367) 497 225 (15,229) (12,056)
Gross profit on sales 4,965 4,658 (280) (565) 5,102 4,478
Research and development
expenses (1,822) (1,306) (100) (50) (1,404) (1,019)
Marketing, selling and general
administrative expenses (4,370) (3,365) (3) 319 (4,057) (3,460)
Other operating income (expense),
net (300) 205 (170) (70) (130) 127
Income from investments in other
companies, net 76 50 (7) (175) 125 194
Income from financial assets and
marketable securities, net (117) 74 (6) (210) (95) 292
Interest income (expense) of
Operations, net (20) (20) - - (20) (20)
EBITA(1) from Operations/EBIT
Infineon - - - - (479) 592
Other Interest(expense) income, net (21) 138 61 75 (85) 45
Goodwill amortization and purchased
in-process R&D expenses of Operations - - 257 60 (257) (60)
Gains on sales and dispositions of
significant business interests
(therein gain on issuance of
subsidiary and associated company
stock EUR20, fiscal 2000) 3,459 64 - - 3,459 64
Other special items - - 292 644 (292) (644)
Income before income taxes 1,850 498 44 28 2,346 (3)
Income taxes (2) (355) (175) (11) (6) (571) (28)
Minority interest 113 (56) - - 113 (56)
Net income 1,608 267 33 22 1,888 (87)
Basic earnings per share 1.81 0.30
Diluted earnings per share 1.81 0.30
Financing and Real
Infineon Estate
2001 2000 2001 2000
Net sales 1,277 1,830 529 451
Cost of sales (1,285) (1,086) (378) (450)
Gross profit on sales (8) 744 151 1
Research and development expenses (318) (237) - -
Marketing, selling and general (212) (162) (98) (62)
administrative expenses
Other operating income (expense), net (23) 2 23 146
Income from investments in other companies,
net (22) 28 (20) 3
Income from financial assets and
marketable securities, net (15) (9) (1) 1
Interest income (expense) of Operations, net - - - -
EBITA(1) from Operations/EBIT Infineon (598) 366 - -
Other Interest(expense) income, net (17) 21 20 (3)
Goodwill amortization and purchased
in-process R&D expenses of Operations - - - -
Gains on sales and dispositions of
significant business interests
(therein gain on issuance of
subsidiary and associated company
stock EUR20, fiscal 2000) - - - -
Other special items - - - -
Income before income taxes (615) 387 75 86
Income taxes (2) 244 (121) (17) (20)
Minority interest - - - -
Net income (371) 266 58 66
(1) EBITA is measured as earnings before financing interest, income taxes,
amortization of goodwill and purchased in-process R&D expenses and certain
one-time items. Interest income related to accounts receivable to customers,
cash allocated to the segments and accounts payable to suppliers are part of
EBITA. EBITA differs from income before income taxes and you should not consider
it to be the same. Other companies that use EBITA may calculate it differently,
and their figures may not be comparable to ours.
(2) The income taxes of Eliminations, reclassifications and Corporate Treasury,
Operations, and Financing and Real Estate are based on the consolidated
effective corporate tax rate (without Infineon) applied to income before income
taxes.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For the nine months ended June 30, 2001 and June 30, 2000
(in millions of EUR, per share amounts in EUR)
Eliminations
reclassifica-
Siemens worldwide tions and
Corporate
Treasury Operations
2001 2000 2001 2000 2001 2000
Net sales 62,460 53,824 (2,331) (2,311) 58,740 49,931
Cost of sales (44,897) (39,602) 2,066 885 (42,409) (36,361)
Gross profit on sales 17,563 14,222 (265) (1,426) 16,331 13,570
Research and development
expenses (4,947) (3,856) (162) (112) (3,940) (3,067)
Marketing, selling and general
administrative expenses (12,283) (10,080) (4) (3)(11,430) (9,487)
Other operating income (expense),
net (18) (24) (383) (364) 92 147
Income from investments in other
companies, net 65 226 (4) (175) 26 310
Income from financial assets and
marketable securities, net 251 2,626 (74) 2,132 335 496
Interest income (expense) of
Operations, net 45 (10) - - 45 (10)
EBITA(1) from Operations/EBIT
Infineon - - - - 1,459 1,959
Other Interest(expense) income,
net 63 161 201 217 (198) (75)
Goodwill amortization and purchased
in-process R&D expenses of
Operations - - 490 166 (490) (166)
Gains on sales and dispositions of
significant business interests
(therein gain on issuance of
subsidiary and associated company
stock EUR481, fiscal 2000) 3,459 7,755 - - 3,459 7,755
Other special items - - 292 (133) (292) 133
Income before income taxes 4,198 11,020 91 302 3,938 9,606
Income taxes (2) (988) (2,588) (22) (67) (965) (2,130)
Minority interest (24) (134) - - (24) (128)
Net income 3,186 8,298 69 235 2,949 7,348
Basic earnings per share 3.60 9.31
Diluted earnings per share 3.60 9.30
Financing and Real
Infineon Estate
2001 2000 2001 2000
Net sales 4,586 4,903 1,465 1,301
Cost of sales (3,477) (2,989) (1,077) (1,137)
Gross profit on sales 1,109 1,914 388 164
Research and development expenses (845) (677) - -
Marketing, selling and general (611) (466) (238) (124)
administrative expenses
Other operating income (expense), net 179 2 94 191
Income from investments in other companies,
net 37 88 6 3
Income from financial assets and
marketable securities, net (11) 2 1 (4)
Interest income (expense) of Operations, net - - - -
EBITA(1) from Operations/EBIT Infineon (142) 863 - -
Other Interest(expense) income, net (1) 30 61 (11)
Goodwill amortization and purchased
in-process R&D expenses of Operations - - - -
Gains on sales and dispositions of
significant business interests
(therein gain on issuance of
subsidiary and associated company
stock EUR481, fiscal 2000) - - - -
Other special items - - - -
Income before income taxes (143) 893 312 219
Income taxes (2) 75 (342) (76) (49)
Minority interest - (6) - -
Net income (68) 545 236 170
(1) EBITA is measured as earnings before financing interest, income taxes,
amortization of goodwill and purchased in-process R&D expenses and certain
one-time items. Interest income related to accounts receivable to customers,
cash allocated to the segments and accounts payable to suppliers are part of
EBITA. EBITA differs from income before income taxes and you should not consider
it to be the same. Other companies that use EBITA may calculate it differently,
and their figures may not be comparable to ours.
(2) The income taxes of Eliminations, reclassifications and Corporate Treasury,
Operations, and Financing and Real Estate are based on the consolidated
effective corporate tax rate (without Infineon) applied to income before income
taxes.
CONSOLIDATED BALANCE SHEETS (unaudited)
As of June 30, 2001 and September 30, 2000
(in millions of EUR)
ASSETS
Eliminations
reclassifications
and
Siemens worldwide Corporate Treasury Operations
6/30/01 9/30/00 6/30/01 9/30/00 6/30/01 9/30/00
Current Assets
Cash & cash
equivalents 5,257 6,862 3,922 5,105 1,125 1,211
Marketable
securities 1,142 3,317 41 34 977 2,768
Accounts
receivable, net 19,786 19,228 344 431 14,865 13,267
Intracompany
receivables - - (11,498) (14,116) 11,308 13,935
Inventories, net 15,523 12,422 (117) (119) 14,350 11,520
Deferred income
taxes 1,512 1,596 - - 1,217 1,352
Other current
assets 10,054 5,666 1,361 642 7,802 4,596
Total current
assets 53,274 49,091 (5,947) (8,023) 51,644 48,649
Long term
investments 3,306 5,402 (38) 74 2,366 4,622
Intangible assets,
net 10,866 6,446 - - 10,488 6,113
Property,plant &
equipment,net 17,975 15,720 2 3 8,764 7,861
Deferred income
taxes 599 485 - - 391 240
Other assets 8,350 4,510 15 321 5,116 1,327
Other intracompany
receivables - - (710) (297) 688 297
Total assets 94,370 81,654 (6,678) (7,922) 79,457 69,109
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt
& current
maturities of
long-term debt 2,565 2,604 1,206 808 439 1,572
Accounts payable 9,429 9,458 (301) (383) 8,246 8,419
Intracompany
liabilities - - (10,568) (11,759) 5,577 4,182
Accrued
liabilities 10,316 9,913 112 125 9,548 8,886
Deferred income
taxes 484 1,086 - - 395 848
Other current
liabilities 19,818 13,794 (821) 1,607 19,225 11,767
Total current
liabilities 42,612 36,855 (10,372) (9,602) 43,430 35,674
Long-term debt 12,049 6,734 7,050 3,224 4,304 2,980
Pension plans &
similar
commitments 2,443 2,473 47 42 2,375 2,419
Deferred income
taxes 688 662 - - 430 348
Other accruals &
provisions 3,895 4,068 (43) (280) 3,388 3,793
Other intracompany
liabilities - - (3,360) (1,306) 57 439
61,687 50,792 (6,678) (7,922) 53,984 45,653
Minority interests 3,131 2,382 - - 3,108 2,382
Shareholders' equity
Common stock, no
par value.
Authorized:
1,145,770,684
and 1,078,130,900
shares,
respectively.
Issued:888,227,350
and 882,930,900
shares respectively 2,665 1,505
Additional paid-
in capital 4,901 5,547
Retained earnings 21,054 19,280
Accumulated other
comprehensive
income 932 2,150
Treasury shares,
at cost.277 &
15,400 shares
respectively - (2)
Total
shareholders'
equity 29,552 28,480 - - 22,365 21,074
Total
liabilities &
shareholders
equity 94,370 81,654 (6,678) (7,922) 79,457 69,109
CONSOLIDATED BALANCE SHEETS (unaudited)
As of June 30, 2001 and September 30, 2000
(in millions of EUR) .............CONTINUED
Financing
ASSETS and Real
Infineon Estate
6/30/01 9/30/00 6/30/01 9/30/00
Current Assets
Cash & cash
equivalents 169 511 41 35
Marketable
securities 107 498 17 17
Accounts
receivable, net 1,208 1,698 3,369 3,832
Intracompany
receivables 83 127 107 54
Inventories, net 1,130 841 160 180
Deferred income
taxes 185 100 110 144
Other current
assets 117 60 774 368
Total current
assets 2,999 3,835 4,578 4,630
Long term
investments 691 432 287 274
Intangible assets,
net 262 222 116 111
Property,plant &
equipment,net 5,136 4,034 4,073 3,822
Deferred income
taxes 104 166 104 79
Other assets 195 164 3,024 2,698
Other intracompany
receivables - - 22 -
Total assets 9,387 8,853 12,204 11,614
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities
Short-term debt
& current
maturities of
long-term debt 859 138 61 86
Accounts payable 1,202 1,222 282 200
Intracompany
liabilities 543 87 4,448 7,490
Accrued
liabilities 416 719 240 183
Deferred income
taxes 26 75 63 163
Other current
liabilities 246 213 1,168 207
Total current
liabilities 3,292 2,454 6,262 8,329
Long-term debt 253 128 442 402
Pension plans &
similar
commitments - - 21 12
Deferred income
taxes 119 178 139 136
Other accruals &
provisions 303 287 247 286
Other intracompany
liabilities - - 3,303 867
3,967 3,047 10,414 10,014
Minority interests 23 - - -
Shareholders' equity
Common stock, no
par value.
Authorized:
1,145,770,684
and 1,078,130,900
shares,
respectively.
Issued:888,227,350
and 882,930,900
shares respectively
Additional paid-
in capital
Retained earnings
Accumulated other
comprehensive
income
Treasury shares,
at cost.277 &
15,400 shares
respectively
Total
shareholders'
equity 5,397 5,806 1,790 1,600
Total
liabilities &
shareholders
equity 9,387 8,853 12,204 11,614
CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)
For the nine months ended June 30, 2001 and June 30, 2000
(in millions of EUR)
Eliminations,
reclassifications
and
Corporate
Siemens Treasury Operations
worldwide
2001 2000 2001 2000 2001 2000
Cash flows from
operating activities
Net income 3,186 8,298 69 235 2,949 7,348
Adjustments to
reconcile net
income to cash
provided
Minority interest 24 134 - - 25 128
Depreciation and
amortization 3,557 2,831 - - 2,436 1,965
Deferred taxes 494 529 11 13 573 392
Gains on sales and
disposals of property,
plant and equipment, net (99) (50) - - (29) (30)
Gains on sales and
disposals of
investments, net (72) (328) - - 130 (328)
Gains on sales and
dispositions of
significant business
interests and gain
from issuance of
subsidiary and
associated
company stock (3,459) (7,755) - - (3,459) (7,755)
Gains on sales of
marketable
securities, net (294) (215) - - (290) (215)
(Income) loss from
equity investees, net
of dividends received (19) (80) - - 17 8
Write-off of acquired
in-process research
and development 139 48 - - 126 48
Change in trading
securities - (2,175) - - - (2,175)
Change in current
assets and liabilities
(Increase) decrease in
inventories, net (2,140) (140) 1 1 (1,900) (464)
(Increase) decrease in
accounts receivable, net 1,087 1,118 (92) (3,318) 434 4,151
Sale of trade receivables 683 - 683 - - -
(Increase) decrease in
other current assets (2,386) (465) (401) (698) (1,350) 102
Increase (decrease) in
accounts payable (772) 844 (43) (93) (737) 883
Increase (decrease) in
accrued liabilities (179) 1,311 18 4 88 1,032
Increase (decrease) in
other current liabilities 1,921 (1,055) 50 798 2,063 (1,817)
Other assets and
liabilities (512) 817 (588) 1,070 (80) (739)
Net cash (used in)
provided by operating
activities 1,159 3,397 (292) (1,988) 996 2,594
Cash flows from investing
activities
Additions to intangible
assets and property,
plant and equipment (4,761) (3,240) - - (2,575) (2,178)
Acquisitions, net of
cash acquired (3,669) (1,200) - - (3,669) (1,200)
Purchases of investments (559) (434) - - (311) (7)
Refundable payment of
promissory note - - - - - -
Purchases of marketable
securities (other
than trading) (200) (301) (11) (4) (139) 10
Increase in receivables
from financing activities - - 637 2,458 - -
Proceeds from sale of
trade receivables - - (683) - - -
Proceeds from sales of
long-term investments,
intangibles and property,
plant and equipment 3,772 1,275 - 4 3,559 963
Proceeds from sales and
dispositions of
significant business
interests, net of cash
sold - 10,309 - 823 (249) 9,486
Proceeds from sales of
marketable securities
(other than trading) 964 258 - - 529 258
Net cash (used in)
provided by investing
activities (4,453) 6,667 (57) 3,281 (2,855) 7,332
Cash flows from financing
activities
Proceeds from issuance of
capital stock of Company 513 - - (823) 513 -
Purchase of common stock
of Company (513) (629) (19) - (513) (629)
Proceeds from issuance of
treasury shares 233 - - - 233 -
Proceeds from issuance of
debt 4,141 100 4,141 100 - -
Repayment of debt (922) (319) (922) (319) - -
Change in short-term debt (50) (722) 851 (378) (2,219) 79
Proceeds from issuance of
redeemable interest in
associated companies - 169 - - - -
Change in restricted cash (19) (45) - - - -
Dividends paid (1,412) (593) 407 - (1,412) (593)
Dividends paid to minority
shareholders (282) (89) (119) - (163) (89)
Intercompany financing - - (5,186) 7,803 5,345 (9,213)
Net cash (used in)
provided by financing
activities 1,689 (2,128) (847) 6,383 1,784 (10,445)
Effect of exchange rates
on cash and cash equivalents - 96 13 20 (11) 69
Net (decrease) increase
in cash and cash equivalents (1,605) 8,032 (1,183) 7,696 (86) (450)
Cash and cash equivalents at
beginning of period 6,862 2,137 5,105 579 1,211 1,486
Cash and cash equivalents
at end of period 5,257 10,169 3,922 8,275 1,125 1,036
Financing and
Infineon Real Estate
2001 2000 2001 2000
Cash flows from
operating activities
Net income (68) 545 236 170
Adjustments to
reconcile net
income to cash
provided
Minority interest (1) 6 - -
Depreciation and
amortization 793 576 328 290
Deferred taxes (128) 114 38 10
Gains on sales and
disposals of property,
plant and equipment, net 8 (1) (78) (79)
Gains on sales and
disposals of
investments, net (202) - - -
Gains on sales and
dispositions of
significant business
interests and gain
from issuance of
subsidiary and
associated
company stock - - - -
Gains on sales of
marketable
securities, net - - (4)
(Income) loss from
equity investees, net
of dividends received (36) (88) - -
Write-off of acquired
in-process research
and development 13 - - -
Change in trading
securities - - - -
Change in current
assets and liabilities
(Increase) decrease in
inventories, net 255 (25) 14 78
(Increase) decrease in
accounts receivable, net 567 (360) 178 645
Sale of trade receivables - - - -
(Increase) decrease in
other current assets (248) (30) (387) 161
Increase (decrease) in
accounts payable (53) 48 61 6
Increase (decrease) in
accrued liabilities (319) 326 34 (51)
Increase (decrease) in
other current liabilities 32 (73) (224) 37
Other assets and
liabilities 12 113 144 373
Net cash (used in) provided by
operating activities 115 1,151 340 1,640
Cash flows from investing
activities
Additions to intangible
assets and property,
plant and equipment (1,767) (698) (419) (364)
Acquisitions, net of
cash acquired - - - -
Purchases of investments (193) (283) (55) (144)
Refundable payment of
promissory note - - - -
Purchases of marketable
securities (other
than trading) (45) (301) (5) (6)
Increase in receivables
from financing activities - - (637)(2,458)
Proceeds from sale of
trade receivables - - 683 -
Proceeds from sales of
long-term investments,
intangibles and property,
plant and equipment 18 31 195 277
Proceeds from sales and
dispositions of
significant business
interests, net of cash
sold 249 - - -
Proceeds from sales of
marketable securities
(other than trading) 426 - 9 -
Net cash (used in)
provided by investing
activities (1,312) (1,251) (229)(2,695)
Cash flows from financing
activities
Proceeds from issuance of
capital stock of Company - 823 - -
Purchase of common stock
of Company 19 - - -
Proceeds from issuance of
treasury shares - - - -
Proceeds from issuance of
debt - - - -
Repayment of debt - - - -
Change in short-term debt 1,285 (416) 33 (7)
Proceeds from issuance of
redeemable interest in
associated companies - 169 - -
Change in restricted cash (19) (45) - -
Dividends paid (407) - - -
Dividends paid to minority
shareholders - - - -
Intercompany financing (23) 322 (136) 1,088
Net cash (used in) 855 853 (103) 1,081
provided by financing
activities
Effect of exchange rates
on cash and cash equivalents - 2 (2) 5
Net (decrease) increase
in cash and cash equivalents (342) 755 6 31
Cash and cash equivalents at
beginning of period 511 30 35 42
Cash and cash equivalents
at end of period 169 785 41 73
MORE TO FOLLOW
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