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Siemens net profit decreases 7% in Q3
By George Frey |
July 31, 2009, Friday
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Print Edition
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GERMAN industrial conglomerate Siemens AG said yesterday that net profit for its fiscal third quarter fell 7 percent as the global recession curbed demand for its products, prompting it to announce about 1,600 job cuts across Europe.
The Munich-based company said net profit in the April-June period fell to 1.3 billion euros (US$1.8 billion) from 1.4 billion euros in the year-ago quarter.
Siemens, whose fiscal year begins in October, said revenues for the third quarter fell 4 percent to 18.3 billion euros from 19.2 billion euros.
The company, whose products range from light bulbs to high-speed trains, confirmed its full-year targets, even in the "current challenging global economic environment."
It said, however, that it would trim 1,600 jobs across Europe, cuts the company said were unavoidable.
Siemens said it would cut the bulk of employees in Austria, affecting 900 workers. A further 300 jobs in Britain and 100 jobs in France will also be eliminated.
Another 300 workers, including 100 in Germany, will be let go at its building technologies division.
Siemens said it expects total sectors profit for fiscal 2009 to exceed the prior-year level of 6.6 billion euros. Total sectors profit is before tax.
The company also said it expects revenue to grow at twice the level of global gross domestic product. Siemens measures business on GDP because it's a good gauge as to how much the world will invest in capital goods and large infrastructure projects. If GDP growth is negative, the aim would be for the percentage decline in revenue to be less than half the rate of decline in global GDP.
"Our third-quarter results demonstrate that we are fully on track to achieve our targets for fiscal 2009," Chief Executive Peter Loescher said in a statement.
He said Siemens did "well" compared with competitors.
The Munich-based company said net profit in the April-June period fell to 1.3 billion euros (US$1.8 billion) from 1.4 billion euros in the year-ago quarter.
Siemens, whose fiscal year begins in October, said revenues for the third quarter fell 4 percent to 18.3 billion euros from 19.2 billion euros.
The company, whose products range from light bulbs to high-speed trains, confirmed its full-year targets, even in the "current challenging global economic environment."
It said, however, that it would trim 1,600 jobs across Europe, cuts the company said were unavoidable.
Siemens said it would cut the bulk of employees in Austria, affecting 900 workers. A further 300 jobs in Britain and 100 jobs in France will also be eliminated.
Another 300 workers, including 100 in Germany, will be let go at its building technologies division.
Siemens said it expects total sectors profit for fiscal 2009 to exceed the prior-year level of 6.6 billion euros. Total sectors profit is before tax.
The company also said it expects revenue to grow at twice the level of global gross domestic product. Siemens measures business on GDP because it's a good gauge as to how much the world will invest in capital goods and large infrastructure projects. If GDP growth is negative, the aim would be for the percentage decline in revenue to be less than half the rate of decline in global GDP.
"Our third-quarter results demonstrate that we are fully on track to achieve our targets for fiscal 2009," Chief Executive Peter Loescher said in a statement.
He said Siemens did "well" compared with competitors.
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