Siemens posts Q3 loss, plans further cuts

German engineering and electronics behemoth Siemens AG on Wednesday reported a net loss for its fiscal third quarter and announced it would take additional cost-cutting measures at its Information and Communication Networks (ICN) division.

Excluding special items, Siemens posted a net loss of 489 million euros (US$415 million, as of June 30, the last day of the quarter being reported), down from a net profit of 439 million euros in the same quarter last year.

Sales amounted to 20.3 billion euros, up from 16.5 billion euros in the same period last year.

The results are mixed throughout the conglomerate. Some divisions, such as power generation and medical, posted sizeable earnings gains, while other divisions, particularly ICN and Information and Communications Mobile (ICM), began restructuring in the face of sharply reduced demand, Siemens said.

"Our third quarter earnings are unsatisfactory," said Siemens Chief Executive Officer (CEO) Heinrich von Pierer in a statement. "Over the coming weeks we will define further measures to improve our results, particularly at ICN."

For the full fiscal year 2001 Siemens expects net profit fall below the level of 2000.

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