Siemens AG — Earnings Release 1998

Jul 16, 1998

News Details

Ad-hoc | 16 July 1998 09:10

Ad hoc-Service: SIEMENS AG Englisch

—————————————————————— Ad hoc-Service: SIEMENS AG Englisch Ad hoc- announcement sent by DGAP. The sender is solely responsible for the contents of this announcement. —————————————————————————— The Hague, July 16, 1998 Interim report for the period October 1, 1997 to June 30,1998 Siemens substantially increased its orders and sales in the first nine months of fiscal 1998. Largely driven by international business, sales rose 15% and new orders climbed 6%. Growth rates eased off somewhat in the third quarter, however. While business continued to expand in the Americas and Europe, orders declined in Asia-Pacific as anticipated. Net income increased 5% to DM 1.783 (1997: DM 1.705) billion. In addition, the sale of selected business activities generated extraordinary gains after taxes of DM 400 million. The company announced a 10-point program and associated restructuring measures to achieve a sustainable improvement in profitability: – Measures to further boost productivity and to adjust capacity at the Semiconductors Group. – Focusing the top program on increasing company value. – A rigorous pruning of problem areas. Divestments will continue. Possibility of listing parts of the company on the stock market. – No major acquisitions foreseen at the time. Creation of prerequisites for stock swaps for future deals. – Increase profitability by reorganizing the business segments, as is being done currently with the information and communication segments. – Measures for reducing tied-up capital. – Measures for improving the capital structure, also through stock repurchases. – Conformance with the American GAAP accounting standard. – Listing on a New York stock exchange. – One-time restructuring charge in the fiscal 1998 financial statements. End of Message