Siemens Posts Strong Results

Tries to put scandal behind

Engineering giant Siemens AG posted unexpectedly strong results and orders on July 30 and tried to turn the page on a scandal over which it intends to seek damages from former directors.

Net profit for the third quarter of Siemens' 2007-2008 fiscal year reached US$2.21 billion, a statement said.

That was a drop of 31% from the equivalent figure a year earlier, but it exceeded the expectations of analysts polled by Dow Jones Newswires, who had forecast an average net profit of US$1.4 billion.

The year-earlier figure had also benefited from the creation by Siemens of a joint venture with Finnish rival Nokia in the telecommunications network sector.

Siemens Chief Executive Peter Loescher told a telephone news conference that the company's 500 top directors would have to buy shares in the parent group, a system aimed at reinforcing their long-term motivation.

The value of the shares would range from 50% to 300% of the executive's annual gross salary, Loescher said.

Siemens released the results a day after saying it would pursue 11 former directors for damages because it felt they had ignored widespread corruption revealed nearly two years ago.

Copyright Agence France-Presse, 2008

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