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

To: elmatador who wrote (299)	4/30/2005 5:49:31 AM
From: elmatador	Respond to of 356

Siemens to transform Mobile division into an independent company Publish Date : 4/29/2005 1:46:00 AM Source : Moneyplans.net Staff The European industrial giant- Siemens posting almost flat operating profit for its second quarter and missed expectations, weighed down by losses in mobile phones affirmed on Wednesday that it did not know whether it would be able to increase earnings this fiscal year. It is likely that Siemens will sell at least half of its loss-making handsets but its full-year earnings may sink on restructuring charges for the ailing business. Operating earnings rose 2 % to 1.098 billion euros ($1.44 billion), missing the average forecast of 1.228 billion euros in a Reuters poll of 21 analysts, while net profit was slightly ahead of expectations at 781 million euros. Siemens shares, which have declined since Kleinfeld took over in January as hopes faded for swift action on weak businesses, were down 1.8 percent at 57.12 euros by 5:46 a.m. EDT, underperforming a 1.1 percent-weaker DAX. The company said it was talking to more than one potential partner for its handsets business, which it is carving out as a separate legal unit, and would likely keep only a minority share. It said it was not currently in talks with possible buyers for its other problem child, IT unit SBS. Siemens said Wednesday (April 27) it will spin off its mobile devices business. The move affects not only mobile handsets but also terminal equipment and devices. Siemens CEO Klaus Kleinfeld announced the transformation of the mobile device division into an independent company during a press briefing here. Besides mobile phones, Siemen wants to outsource cordless DECT phones, set-top boxes and other consumer appliances from the new group. The new mobile unit will retain the Siemens brand name. "Any future partnering option will always cover Siemens mobile phones," Kleinfeld said. Siemens' supervisory board has commissioned an evaluation of a "suitable legal form" for the mobile unit, added Siemens' CFO Joachim Neub¼rger. That process should take a maximum of three months. During the review, the new company will seek an international partner to strengthen its competitive position. Kleinfeld declined to name potential partners. "There are several options," he said.