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Technology Stocks : Siemens -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (96)	7/26/2001 12:41:29 PM
From: Eric L	Read Replies (3) \| Respond to of 356

re: Siemens Q2 Wish the news was better. >> Siemens Reports A Loss And Plans More Job Cuts UK Cellular News July 25, 2001 >>Siemens has sacked Roland Koch, the head of its networks unit, and said it will cut more jobs after recording a second quarter loss of US$428 million. The company has already announced 9,700 job cuts. "Over the coming weeks we will define further measures to improve our results, particularly at Information and Communication Networks. This prepares the way for us to achieve our medium-term earnings targets despite the weakness in our markets" said Chief Executive Heinrich von Pierer. The network infrastructure and mobile phone handset division recorded a loss of US$447 million. Included in this amount are charges totaling US$323 million, primarily for inventory write-offs and capacity adjustments, and an impairment of US$60 million related to ICM's 3% investment in Brokat. The profitable GSM infrastructure business delivered a profit of approximately US$96 million, which was insufficient to offset the charges above to-gether with operating losses of approximately US$157 million in the mobile phone business, resulting in a loss for the Group overall. "Nonetheless, ICM reacted quickly and decisively in a difficult market," Pierer noted. ICM's sales grew 34% to US$2.2 billion compared to US$1.66 billion in the prior year, while new orders grew 12%, from US$2.29 billion to US$2.56 billion. This growth was due primarily to continued demand at the Mobile Networks Division. Mobile phone volumes for the quarter grew to 5.8 million units from the 5.6 million units sold into distribution in the third quarter a year ago. An estimated 1.2 million additional units reached consumers from stock already owned by distributors. << - Eric -