• Germany's news in English
 
German giants post feeble figures
Photo: DPA

German giants post feeble figures

Published: 08 Nov 2012 12:36 GMT+01:00

Tech firm Siemens's net profit tumbled 27 percent in the 12 months to September "as we didn't fully succeed in significantly boosting our performance vis-a-vis competitors," chief executive Peter Löscher said.

In a bid to rectify this, Siemens planned to "reduce its costs by €6.0 billion, increase its competitiveness, and become faster and less bureaucratic," it said.

Siemens did not clarify exactly what the cost-cutting would entail, but "it will have an impact on the workforce even if I can't say much about that at this point," Löscher told a news conference, declining to say how many jobs would be on the line.

The reorganisation would include "both reinforcements through acquisitions as well as the divestment of businesses whose profits remain below company's expectations over a longer period," the company said.

Telekom upbeat despite losses

German telecoms giant Deutsche Telekom said that one-off charges connected to the merger of its T-Mobile USA unit pushed it into a heavy loss in the third quarter.

The group booked a bottom-line net loss of €6.9 billion in the period from July to September, compared with net profit of €1.069 billion a year earlier.

Nevertheless, underlying business was "extremely positive," and the group was therefore sticking to its full-year profit targets, the company said in a statement.

"Deutsche Telekom showed an extremely positive development in operations in the third quarter of 2012. On the other hand, a considerable book loss had to be reported following an accounting-relevant special factor," said chief executive René Obermann.

That was due to €7.4 billion in goodwill and asset writedowns on T-Mobile USA, which Deutsche Telekom has agreed in October to merge with MetroPCS. The German group will take a 74-percent stake in the combined entity.

Commerzbank comeback

Meanwhile, Germany's second-biggest bank Commerzbank said on Thursday it returned to profit in the third quarter of this year, but the result fell short of analysts' expectations.

Commerzbank said in a statement it booked a net profit of €78 million in the period from July to September, compared with a loss of €687 million 12 months ago.

Analysts polled by Dow Jones Newswires had been forecasting a bigger net profit of around €141 million.

Already late on Wednesday, Commerzbank had said it was unlikely to pay a dividend for either 2012 or 2013 given the difficult market environment.

The loss for the third quarter of 2011 had largely been due to writedowns on the bank's holdings of Greek sovereign bonds. Nevertheless, the market environment "will remain volatile in the coming months," said chief executive Martin Blessing.

"We are, therefore, continuing with our strict cost management, consistently reducing non-strategic portfolios further and strengthening our profitability," he said.

AFP/The Local/bk

The Local (news@thelocal.de)

Your comments about this article

14:16 November 8, 2012 by royp
As per usual, The local gets everything wrong, Siemens made 5.2 Billion profit and record revenue levels. They just expect a temporary dip in orders due to arab spring, putting orders on hold while the new governments re-establish order, this will reduce orders for a couple of years, but this is a macro economic - political problem, but despite this they made 5.2 billion protits so no way will the workers council in Germany allow workers in a profitable company to be made redundant
14:32 November 8, 2012 by smart2012
yes royp, germany is booming....

Local, not to forget Opel and MAN (kurzarbeit already started) plus unemployemnt going up (even considering that figures in Germany are completely faked by 400 Euros jobs and temporary agency contracts)..

Bu this is not a surprise, and a big thank of this is to be given to Frau Verkel.

Germans, wake up, stop reading BILD
Today's headlines
Xenophobia thrives in shadow of Berlin towers
A demo in Marzahn-Hellersdorf. File photo: DPA

Xenophobia thrives in shadow of Berlin towers

There's little to break the monotony of communist-era apartment blocks stretching across Marzahn-Hellersdorf, an east Berlin satellite district that has gained national notoriety for a spate of anti-foreigner protests. READ  

Ecuador returns German money in oil valley spat
Photo: DPA

Ecuador returns German money in oil valley spat

Ecuador's President Rafael Correa said Saturday that Quito would be giving back about $8.5 million donated by Germany last year, in an environmental row. READ  

German bank sues Ecclestone for €345mn
Photo: DPA

German bank sues Ecclestone for €345mn

German bank BayernLB is seeking €345 million ($423 million) in a lawsuit against Formula One magnate Bernie Ecclestone over the 2006 sale of the sport's rights, according to a report. READ  

Löw aims for Euro 2016 with new-look Germany
Joachim Löw holding the World Cup trophy. File photo: DPA

Löw aims for Euro 2016 with new-look Germany

World Cup winners Germany have suffered something of a hangover since their triumph in Brazil, but coach Joachim Löw is hoping a new-look side can go on to claim more glory at Euro 2016. READ  

T-Mobile to pay $90 mn over US fraud charges
Photo: DPA

T-Mobile to pay $90 mn over US fraud charges

German mobile phone company T-Mobile has agreed to pay at least $90 million to settle US government claims that it bilked customers with bogus charges, US regulators said Friday. READ  

Ethics Council rejects assisted suicide law
Photo: DPA

Ethics Council rejects assisted suicide law

The German Ethics Council said the law should not be changed to permit assisted suicide in a paper published on Friday. READ  

Abandoned themepark needs 14m says Berlin
Swan Lake. An abandoned ride in the Spreewald pleasure park. Photo: DPA

Abandoned themepark needs 14m says Berlin

The iconic ruined themepark in the centre of Berlin - a long-time favourite of hipster adventurers - needs a clean-up costing at least 14 million euros, the Berlin government has revealed. READ  

Police nab Nuremberg station bomb hoaxer
File photo of Nuremberg main station: Shutterstock

Police nab Nuremberg station bomb hoaxer

Officers in Nuremberg arrested a man on Thursday evening after he called in a false bomb threat against the main train station READ  

Opinion
Angela, David...and Nigel
So near...and yet so far Photo: DPA

Angela, David...and Nigel

The rise of UKIP broke up what had been a good 2014 for Cameron and Merkel. READ  

'Dr Death' corpse museum gets go-ahead
Dr Gunther von Hagens. Photo: DPA

'Dr Death' corpse museum gets go-ahead

A Berlin court has said that infamous human taxidermist Gunther von Hagens can open a museum in the capital - over objections from local officials. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Willy Brandt at his inauguration in 1972. Photo: DPA
National
Willy Brandt: the man, the chancellor... the airport?
Dresden skyline and river by night. Photo: DPA
Politics
What does Dresden have against Muslims?
Sponsored Article
Why are these International Baccalaureate students cheering?
Germany's national football team lifts the World Cup trophy
Gallery
Germany's most-Googled words of 2014
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Sponsored Article
Top ten gifts for an expat Christmas
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Culture
Stuff your face with these festive German cookies
Photo: DPA
Culture
What do beer, breakfast cereal and dildos have in common?
Culture
The Local's guide to German Christmas markets
Sponsored Article
Top five quirky Christmas jumpers
Photo: DPA
Culture
Get ready for Christmas like a German. We tell you how.
Photo: DPA
Munich
She did what with her dead mother?
Photo: DPA
National
Germany still paying for crisis fall out
Photo: DPA
Culture
Saxon wurst is the worst, Christmas market declares.
Photo: DPA
Politics
Can 'sorry' ever be enough for the Linke?
Sponsored Article
Shop Christmas gifts at Debenhams international store
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
Shutterstock
Sponsored Article
Offer: Unlimited airmiles through December 19th
Photo: DPA
Gallery
See how Berlin has changed in 22 photos
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,165
jobs available
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply
Toytown Germany
Germany's English-speaking crowd