Siemens Slips Unexpectedly Deep into the Red
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Siemens, the German IT group, slipped surprisingly far into the red in the third quarter due to problems in its core business and to one-time charges.
The company reported Wednesday in Munich that, without taking into account the losses of its chip subsidiary Infineon, and without one-time effects, its loss after taxes in the third quarter of fiscal year 2000/01 amounted to EUR 489 million (US$429 million). The reason for this was the "weakening economic environment." CEO Heinrich von Pierer called the performance "unsatisfactory." The group result for the entire year 2001 will "be below the level of the previous year," Pierer said.
Thanks to the transferal of Infineon shares to a pension fund and the resulting input tax proceeds of EUR 3.459 billion, the group still obtained a net gain of EUR 1.6 billion. The group stressed that, taking Infineon and any one-time effects into account, the result is a plus of EUR 1.608 billion.
In the first nine months, the result after tax without Infineon and without one-time effects was more than halved to EUR 652 million (US$573 million). The group originally announced a double-digit increase in turnover and disproportionately high profit growth both with and without Infineon. These goals were gradually retracted. The goals published in December 2000 for the year 2003 are said to still be valid, however.