Siemens shares jump despite fourth-quarter loss

Nov 8, 2007, 10:35 GMT

Munich - German electrical and engineering giant Siemens posted Thursday a fourth-quarter fiscal loss of 74 million euros (108 million dollars), while recording rapid revenue growth, particularly in the Asia-Pacific region.

'Operationally, we expect more quality growth in fiscal 2008,' said company chief executive Peter Loescher who took over the job in July after the group's key top executives bowed out in the wake of a corruption scandal that rocked the 160-year-old company.

Munich-based Siemens reported a profit of 148 million euros for its fiscal fourth quarter ending September 30.

'Specifically, we anticipate volume growth that is twice as high as the rate of global GDP growth, and that our operating profit will grow at least twice as fast as our volume,' said Loescher.

'Dubious payments' totalling 1.3 billion euros had been uncovered by internal probes, the company said, adding that most of it appeared to have disappeared into secret bank accounts for use as bribes outside Germany.

The company has had to pay fines for widespread corruption related to the securing of contracts.

Investors responded positively to the company's results with its shares jumping 3.1 per cent to 97.73 euros in morning trading in Frankfurt.

Siemens attributed the fourth quarter loss to tax costs amounting to 1.0 billion euros, related to the sale of Siemens VDO Automotive, and other 'non-operating items.'

Operating profits over the quarter rose 166 per cent compared with the same quarter a year ago to 1.990 billion euros.

Growth was particularly strong in the Asia-Pacific region, with revenue up 19 per cent and orders surging 62 per cent. Overall revenue rose 9 per cent to 20.201 billion euros, while new orders jumped 21 per cent to 21.328 billion.

Over the full year, net income increased 21 per cent to 4.038 billion euros.