Siemens sees earnings boost from networks division

Siemens AG reported a sharp increase in net profit for its fiscal fourth quarter, compared to a year earlier, buoyed by strong performance in its Information and Communication Networks (ICN) operating group.

Consolidated net profit for the quarter rose to $US839 million as of September 30, the last day of the period reported, up from €53 million a year earlier, while consolidated net sales for the quarter fell slightly, from $US25 billion to $US23.23 billion.

For its fiscal year 2003, Siemens reported net profit of $US2.88 billion, down slightly on the $US3.05 billion reported in 2002. Excluding the effects of a one-time gain of $US1.09 billion from the sale of shares in semi-conductor company, Infineon AG, during the year, however, net profit for the full year rose 47 per cent from $US1.95 billion a year earlier, Siemens said. Net sales for the full year slipped to $US74.23 billion, down from $US87.19 billion for fiscal year 2002.

Siemens' ICN group reduced its loss for the full fiscal year (with a 2003 loss of $US429 million compared to a 2002 loss of $US811 million) largely due to strong performance in the fiscal fourth quarter, where it made a profit of $US57 million, compared to a loss of $US67 million a year earlier. (Siemens reports profit for its operations groups excluding exceptional charges, interest, tax, and some pension costs.) The enterprise networks business saw profits increasing through the year while the carrier networks and services business substantially reduced its losses, the company said.

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