|
||||||||
  |
||||||||
|
||||||||
|
||||||||
|
||||||||
|
||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||
Siemens sees tough year ahead
MUNICH, Germany -- Siemens, the German electronics and engineering giant, on Wednesday posted a rise in profits as it cut costs but warned the coming year would be difficult as demand continues to weaken. The group said it will face "declining business volume" next year as worsening economic conditions cut into investments by companies in Siemens' main markets. "Fiscal 2003 will be a year of challenges," Chief Executive Heinrich von Pierer said in a statement. "We will continue to focus on generating net cash from operations, though progress will be more difficult since we have already made significant improvements." He added. "We expect that this will lead to persistent weak investment sentiment in our important industrial and regional markets, especially telecommunications and power." Net income for the year to September 300 rose 24 percent to 2.597 billion euros ($2.62 billion), while sales fell 3 percent to 84.016 billion euros and orders slid 7 percent to 86.214 billion euros. Fourth-quarter operating profit was 176 million euros, which included 1.07 billion euros in charges for severance packages and asset writedowns. That compares to a loss of 130 million euros in the period last year when the company incurred charges of 959 million euros. Net profit for the quarter was 53 million euros, or 0.06 euros a share, compared to a loss 1.1 billion, or 1.24 euros, a year earlier. The Munich-based conglomerate makes every thing from mobile handsets and fixed-line networks to lighting, power generation, transportation and medical equipment. The telecoms units have hardest hit by the global economic slowdown and falling demand for mobile phones. Siemens has cut almost 20,000 jobs as handset and network sales declined. Siemens (FSIE) shares were down 2.2 percent to 43.62 euros in afternoon Frankfurt trading on Wednesday.
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||
