• Germany's news in English

German giants post feeble figures

The Local · 8 Nov 2012, 12:36

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

Facebook Twitter Google+ reddit

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.

Story continues below…

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)

Facebook Twitter Google+ reddit

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
These are Germany's top ten universities
The new library of Freiburg University. Photo: Jörgens.mi / Wikimedia Commons

These are the best universities in all of Germany - at least according to one ranking.

Introducing Swabians - 'the Scots of Germany'
Photo: DPA

These Southern Germans have quite a reputation in the rest of the country.

Woman sues dentist over job rejection for headscarf
Photo: DPA

A dentist in Stuttgart is being taken to court by a woman whom he rejected for a job as his assistant on the basis that she wears a Muslim headscarf.

Isis suspect charged with scouting Berlin attack sites
Photo: DPA

German federal prosecutors said Thursday they had brought charges against a 19-year-old Syrian man accused of having scouted targets in Berlin for a potential attack by the Isis terror group.

Berlin Holocaust memorial could not be built now: creator
The Memorial to the Murdered Jews of Europe, in Berlin. Photo: DPA.

The architect of the Berlin Holocaust memorial has said that, if he tried to build the monument again today, it would not be possible due to rising xenophobia and anti-Semitism in Germany and the United States.

'Liberal' Germany stopping Europe's 'slide into barbarism'
Ian Kershaw. Photo: DPA

Europe is not slipping into the same dark tunnel of hate and nationalism that it did in the 1930s - mainly thanks to Germany - one of the continent's leading historians has said.

Eurowings strike to hit 40,000 passengers
Travelers impacted by the strike on Thursday wait at Cologne Bonn airport. Photo: DPA.

The day-long strike by a Eurowings cabin crew union is expected to impact some 40,000 passengers on Thursday as hundreds of flights have been cancelled.

Deutsche Bank reports surprise quarter billion profit
Photo: DPA

Troubled German lender Deutsche Bank reported Thursday a surprise €256-million profit in the third quarter, compared with a loss of more than six billion in the same period last year.

US 'warned Merkel' against Chinese takeover of tech firm
Aixtron HQ. Photo: DPA

The German government withdrew its approval for a Chinese firm to purchase Aixtron, which makes semiconductor equipment, after the US secret services raised security concerns, a German media report said Wednesday.

Long-vanished German car brand joins electric race
Photo: DPA

Cars bearing the stamp of once-defunct manufacturer Borgward will once again roll off an assembly line in north Germany from 2018, the firm said Wednesday.

10 German clichés that foreigners get very wrong
Sponsored Article
Last chance to vote absentee in the US elections
10 ways German completely messes up your English
Germany's 10 most weird and wonderful landmarks
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
jobs available
Toytown Germany
Germany's English-speaking crowd