By Jo Best, 10 November 2005 15:00
NEWS
Siemens has seen fourth-quarter results take a dramatic tumble, due in part to the poor performance of its IT services and telecoms units.
Siemens Q4 profit for 2005 came in at 77m, a significant difference from the 654m seen in the corresponding period the year before, while revenue remained largely stable year-on-year.
Restructuring costs have played a major part in the company's results woes this quarter. According to Siemens, the recent divesting of the company's mobile division caused a hit of 810m on the balance sheet.
The Communications division, which previously housed Siemens' mobile unit, saw its profit tumble, even without the inclusion of mobile division's loss. The unit as a whole brought in 53m in the fourth quarter of this year, compared to 286m in the corresponding period last year.
The situation at Siemens' IT services affiliate SBS (Siemens Business Services) has also worsened. SBS' debt grew from 28m in the last quarter of 2004 to 427 this year.Siemens recently announced a cost-cutting drive to trim outgoings by 1.5bn. As a result, the firm is shedding 2,400 jobs over the next two years.
In a statement, Siemens CEO Klaus Kleinfeld described fiscal 2005 as "a very dynamic year" for the company.
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