Siemens Profits Increase But Company Plans to Restructure

Predicts 'challenging' conditions in the manufacturing sector

Siemens announced better-than-forecast earnings results on Jan. 26 but said it was also about to carry out a restructuring in the face of an expected fall in full-year profit.

Net profit rose to 1.53 billion euros (US$2.15 billion) between October and December, the first quarter of the company's 2009-2010 fiscal year, from 1.23 billion euros a year earlier, Siemens said.

"Earnings for the first quarter provide a gratifying snap-shot of the current situation," Siemens chief executive Peter Loescher said. "The actions we took at a very early stage are now cushioning us from the ongoing repercussions of the global recession," he said.

"We will continue to tackle all challenges decisively and in a responsible manner. Only such an approach can ensure Siemens' long-term success."

The company, foreseeing "challenging" conditions in the manufacturing sector and on financial markets, said it expected a fall in profit in its key sectors to between 6.0 and 6.5 billion euros this year from 7.7 billion in 2008-2009.

Finance Director Joe Kaeser told a press conference that "in activities affected by structural market changes and competition or by technological developments ... adjustments are necessary."

Loescher added that the measures envisaged would "affect specific activities and sites." No further details were provided.

Loescher said Siemens trade unions would be informed of the plans on January 28.

Copyright Agence France-Presse, 2010

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