ots Ad hoc-Service: SIEMENS AG <DE0007236101> Preliminary figures for the period October 1, 1999 to March 31, 2000
Munich (ots Ad hoc-Service) -
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Siemens more than doubles earnings in second Quarter
Siemens followed up an excellent first quarter (October 1 - December 31, 1999) with an even stronger performance in the second quarter (January 1 - March 31, 2000). Net income before extraordinary items jumped 104 percent to EUR780 million in the second quarter. Earnings growth was driven by improvements in Operations; all Groups are in the black. The company again achieved a positive EVA (economic value added). The Infineon IPO and the sale of other business activities generated extraordinary items after taxes of EUR3.63 billion. Despite divestments, growth accelerated in the second quarter: orders rose 19 percent and sales 15 percent over the comparable period last year.
Company earnings considerably exceeded projections for the first half year. Net income before extraordinary items soared to EUR1.405 billion - an increase of 98 percent over the comparable period last year. Extraordinary items after taxes totaled EUR4.605 billion. Net income including extraordinary items reached EUR6.010 billion (1999: EUR0.71 billion). Orders for the half year increased 17 percent to EUR39.0 billion and sales 13 percent to EUR35.5 billion.
Siemens remains optimistic for the year as a whole and expects to post a positive EVA for the full fiscal year, one year earlier than originally projected.
Stock buy-back program
The improved cash flow generated by higher earnings from Operations and the net cash provided by divestments will make it possible to implement the stock buy-back program approved at the annual shareholders' meeting in February. The buy-back, which will take place in the coming months, is limited at present to one billion euros worth of stock. The buy-back was approved by the Managing Board of Siemens AG. Upon repurchase of the shares, they will be retired to reduce the company's capital stock.
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