Siemens AG — Board/Management Information 2001

May 10, 2001

News Details

Ad-hoc | 10 May 2001 08:31

Ad hoc-Service: Siemens AG english

Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Siemens’ Information and Communications business area takes measures to ensure profitability in difficult environment The three Groups comprising Siemens’ Information and Communications business area are outlining their goals and business strategy at an analysts Conference in London. Discussions are centered on measures for concentrating on growth businesses, cutting costs and adjusting resources and capacities. The measures implemented should substantially strengthen profitability. Information and Communication Mobile (ICM) and Information and Communication Networks (ICN) are the Groups pirimarily affected by the measures. Savings at ICM are expected to total EUR 600 million. As previously announced, some 2,600 temporary employment contracts are not being extended. Anticipated savings at ICN will total EUR 800 million. To reduce costs, ICN will cut 5,500 Jobs and transfer a further 2,000 employees to ICM along with its microwave radio business. Plans call for rapidly cutting back start-up losses in the strategic core businesses of IP convergence (Surpass and Hipath), broadband access (including Efficient Networks), optical networks (Optisphere) and Internet routers (Unisphere), and thus achieving a targeted increase in growth-based earnings of roughly EUR 300 million. The entire package of measures is designed to enable the ICN Group to achieve an EBITA margin of 5% to 6% and sales of some EUR 14 billion to EUR 15 billion in the coming fiscal year. Over the next few quarters, restructuring costs at ICM will total EUR 100 million to EUR 200 million, while ICN will incur some EUR 250 million in restructuring charges. Despite current weaknesses in its market, the Information and Communications business area is holding to its medium-term margin targets announced last December. end of ad hoc announcement (c) DGAP 10.05.2001 ——————————————————————————– WKN: 723610; Index: DAX; EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München, Stuttgart; EUREX; Amsterdam; Brüssel; London; Paris; Wien; Zürich; New York 100831 Mai 01