Siemens reports tumbling profits
Europe’s biggest electronics and electrical engineering company Siemens has reported dwindling down profit figures. The company said that its net profit fell by 88 percent in the fourth quarter with losses at its information technology and mobile phone units. These departments of the company bought the revenues down resulting in lowering profits for the company.
Siemens reported earnings of 77 million euros ($90.4 million), or 9 Euro cents (11 U.S. cents) a share, in the July-September period. This is nothing compared to figures of 654 million euros, or 73 Euro cents a share, a year earlier for the same period. Their quarterly revenue rose to 22.1 billion euros ($25.9 billion) from 19.6 billion euros the year. This was mainly due to its power generation, medical equipment, and automation units.
The company earned 2.2 billion euros ($2.6 billion), or 2.42 euros ($2.84) a share, compared with 3.4 billion euros, or 3.66 euros a share, in fiscal 2004. The shares of the company were however up half a percent to 62.36 euros ($73.20) in Frankfurt trading after the figures were released in the media. Siemens mainly suffered due to continued losses at its information technology division, Siemens Business Services.
Siemens is also looking towards cutting more jobs in their IT department. They also recently sold their mobile businesses to BenQ.