Siemens: cost cuts help bottom line

22 Jan 2004

Despite a 3% dip in sales year-on-year to EUR18.33 billion, net income at Siemens rose 39% to EUR726 million. Operating profit rose 24% from the year-ago period to EUR1.36 billion and orders increased 2% to EUR20.49 billion. The group’s information and communications network (ICN) unit benefited from ongoing restructuring efforts, delivering a long promised profit of EUR42 million compared with a loss of EUR157 million last year. However sales and orders for the ICN unit remained flat at EUR1.70 billion and EUR1.85 billion respectively. The information and communication mobile unit fared somewhat better, more than doubling first quarter profit to EUR123 million, lifted by strong handset sales over Christmas. Sales at that unit rose 6% to EUR2.96 billion, and orders increased 23% to EUR3.02 billion.