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Siemens suffers profit collapse

The Local · 24 Jan 2012, 08:51

Published: 24 Jan 2012 08:51 GMT+01:00

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The company’s net profit dropped around €300 million to €1.46 billion on the same period last year, it was announced at the Annual General Meeting in Munich.

The company’s leadership blamed delays to major projects, including the development of wind energy parks, as well as the manufacture of ICx fast trains for Germany’s rail operator Deutsche Bahn.

On top of this, Siemens was hit hard by the debt crisis in the eurozone, with orders down five percent on last year. But thanks to a large reserve of commissions, the company was able to increase overall turnover by two percent.

“We’re very clearly maintaining our targets,” Siemens boss Peter Löscher said Tuesday morning in an interview with Bloomberg TV.

But he also announced he would have to gird shareholders for difficult year ahead. “Even though we’re expecting a recovery in the second half of the year, we have to work hard to reach our targets,” he added.

Siemens wants to increase turnover by between three and five percent in 2012, and equal last year’s total profit of €6 billion.

Story continues below…

DPA/The Local/bk

The Local (news@thelocal.de)

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Your comments about this article

19:29 January 26, 2012 by raandy
you can't be bribing people and not expected to be in court in China, Usa and elsewhere for sleazy business practice and make a profit.
01:57 January 27, 2012 by DavidtheNorseman
Ummm....they failed to make an ambitious goal, not profit. Thank you to the Local for including the fact that they still made 1.46 billion in NET profit :-) I wouldn't jump ship just yet.........
14:47 January 29, 2012 by raandy
On December 13, 2011, U.S. authorities brought criminal and civil charges against a group of former executives of German engineering company Siemens AG and its Argentine subsidiary for violations of the Foreign Corrupt Practices Act (FCPA). The charges come more than three years after Siemens was charged with violations of the FCPA and paid $800 million to resolve charges with the Department of Justice (DOJ) and Securities and Exchange Commission (SEC), the largest FCPA penalty ever imposed. taken from the national news.

It seems apparent that fines, settlements and legal cost were most likely the reason.
22:27 January 29, 2012 by Artiszee
Bribing scandal is now history, this stems from 2008. Siemens are now probably one of the worlds most compliant companies
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