Profits double at Siemens

27 Jul 2006

Electronics and engineering conglomerate Siemens has reported a 14pc increase in revenues during the third quarter to €21.1bn.

The company, which employs 800 people in Ireland, reported profits of €792m, double the profits reported a year ago.

Major earnings contributions came from the company’s automation and drives division, its medical solutions division, its power generation division, automotives and power transmission and distribution.

Severance charges at Siemens Communications and Siemens Business Services totalled €69m, which was more than a year ago but less than originally expected.

Profits were also boosted by the sale of Infineon shares, which resulted in a €33m gain.

Third-quarter orders of €22.4bn were up 14pc compared with last year.

“The third quarter continued our overall momentum, with higher income, sales and orders compared to a year earlier,” said Siemens Ireland CEO Lorenz Zimmermann.

“It was a particularly successful quarter in terms of reshaping our business portfolio with the initiation of our strategic acquisition of Bayer Diagnostics, which employs 300 people in Swords, Co Dublin. This will make Siemens an important player in clinical diagnostics, one of the most dynamic sectors of medicine.

“For the full year, we expect to deliver income from continuing operations at least level with the prior year, despite significantly higher charges at our Information and Communications Groups and substantial changes in our business portfolio. All our efforts remain focused on meeting our stated 2007 targets,” Zimmermann said.

By John Kennedy