Siemens Medical Solutions shows strong gains while overall income falls
11 November 2005
Siemens has announced a fall in profits from €3405 billion to €2248
billion for the 2005 financial year, and a more drastic fall of 88% to €77
million for the fourth quarter, compared to 2004.
Strong earnings came from Automation and Drives, Medical Solutions, Power
Generation, Siemens VDO Automotive and Osram. Its troubled mobile devices
business was sold to BenQ Group of Taiwan in the fourth quarter, and Siemens
Business Services posted a large loss €690m.
Europe continues to be the strongest region, with a total business volume
of €40 billion. Sales in Germany, included in this figure, came to €15.7
billion. Siemens showed high sales growth of 10 % in the U.S.
Medical Solutions contributed €976 million in Group profit in fiscal
2005. Diagnostics imaging solutions led growth for the year, resulting in an
8% rise in sales, to €7.626 billion, and a 6% increase in orders, to €8.641
billion. During the year Medical Solutions acquired CTI Molecular Imaging,
Inc., which strengthened its ability to discover, develop and deliver
molecular imaging solutions.
In the fourth quarter, Group profit of €302 million was up 11%
year-over-year, and sales and orders both rose to records of €2.275 billion
and €2.569 billion, respectively.
"Fiscal 2005 was a very dynamic year for Siemens,” said Siemens CEO Klaus
Kleinfeld in presenting preliminary results for the year. “We saw healthy
growth, notably double-digit growth in orders, and many of our Groups
produced strong profit performances. We also completed one of our busiest
years of portfolio changes, gaining new strength in power, medical solutions
and industrial automation. Furthermore, we took important steps with respect
to our Information and Communications businesses. Overall, we delivered €3.1
billion in income from continuing operations, in line with our earlier
guidance, despite significant charges."
Siemens' share prices rose slightly in Frankfurt and New York, but
continued falling in London following the financial statement.