Siemens profits up 39pc to €3bn

11 Nov 2004

Technology, communications and engineering giant Siemens has reported a profit of €3.4bn for the year, a 39pc increase, on the back of total sales of €75.1bn, which were up 3pc. The company, which employs 800 people in Ireland, attributed the growth to mostly double digit growth in many of its key business units.

Automation and Drives, Medical Solutions, and Power Generation contributed the lion’s share of Siemens’ profit from operations, followed by Siemens VDO Automotive and Osram. Despite difficult markets, Information and Communications Networks, Logistics and Assembly Systems, Information and Communication Mobile and Industrial Solutions and Services all made significant improvements in Group profit.

Siemens achieved its goal of restoring top-line growth in fiscal 2004, posting sales of €75.1bn compared to €74.2bn a year earlier. Sales were up 3pc year-over-year on a comparable basis.

“Fiscal 2004 was a very successful year for Siemens,” said CEO Heinrich Pierer. “Most of our Groups delivered impressive results, including strong volume growth and double-digit earnings growth, thanks to successful implementation of our ‘Go for profit and growth’ initiative.

“We are continuing this initiative in fiscal 2005. We are also pursuing further operational improvements at our Groups, given that factors such as a weakening U.S. dollar and rising commodity prices may make the macroeconomic environment more challenging,” Pierer said.

By John Kennedy