Siemens Posts Strong Results

July 30, 2008
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

Sponsored Recommendations

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!