Siemens AG — Earnings Release 2001

Jul 25, 2001

News Details

Ad-hoc | 25 July 2001 07:34

Siemens AG english

Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Siemens in the third quarter (April 1 to June 30) of fiscal 2001 * Siemens earned EUR1.608 billion in net income including Infineon and special items. * Special items include a EUR3.459 billion pretax gain on the irrevocable transfer of Infineon shares into Siemens’ domestic pension trust and a EUR292 million write-down related to a major contract cancellation. * Net income excluding Infineon and these special items after taxes was a negative EUR489 million. * ICN and ICM posted restructuring-related expenses of EUR790 million. In the third quarter of fiscal 2001, Siemens’ sales excluding Infineon climbed 23% to EUR20.265 billion for the quarter, and orders also rose 23% to EUR23.154 billion. Including Infineon, sales and new orders rose 19% and 13%, to EUR21.360 billion and EUR23.718 billion, respectively. Siemens earned EUR1.608 billion in net income including Infineon and special items. Net income excluding Infineon and these special items after taxes was a negative EUR489 million. Siemens recorded mixed results in a weakening economic environment. Several operating Groups, including Power Generation, Medical Solutions, and Transportation Systems, posted sizable earnings gains. Sharp declines in demand and increased pricing pressures particularly in the Information and Communications businesses, however, led to operating losses, charges, and impairments that more than offset these successes. The business groups IC Mobile as well as IC Networks posted special items totaling EUR790 million in the third quarter. These reflect restructuring- related expenses such as inventory write-offs and capacity adjustments as well as write-downs for receivables. IC Networks is planning even more comprehensive adjustments in its cost structure and business portfolio. Net income for the first nine months (October 1, 2000 – June 30, 2001), excluding Infineon and special items, fell to EUR652 million from EUR1.413 billion in the same period a year earlier. EBITA from Operations decreased 26%, from EUR1.959 billion in the first three quarters of the prior year to EUR1.459 billion in the current year. Siemens posted an 18% gain in sales to EUR58.586 billion for the nine-month period, while orders increased even faster, from EUR54.493 billion to EUR67.210 billion year-over-year. For the nine-month period, net income for Siemens Worldwide excluding special items was EUR651 million, down from EUR1.872 billion in the same period a year earlier. Sales and orders climbed 16% to EUR62.460 billion and 17% to EUR70.315 billion, respectively. It appears that the global economic environment will continue to be difficult over the next few months. Independent of these factors, in the coming months Siemens’ priorities are further restructuring of the I&C Groups and integrating the acquisition of Atecs. Taking these factors into account, Siemens expects that net income for fiscal 2001 will be below last year’s level. The company sticks to its earnings targets for 2003. The steps Siemens is taking to achieve this are combined under the title “Operation 2003”. end of ad hoc announcement (c) DGAP 25.07.2001 ——————————————————————————– WKN: 723610; Index: DAX; EURO STOXX 50 Listed: Amtlicher Handel in Berlin, Bremen, Düsseldorf, Frankfurt, Hamburg, Hannover, München, Stuttgart; EUREX; Amsterdam; Brüssel; London; Paris; Zürich; New York 250734 Jul 01