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Siemens cuts more jobs
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April 26, 2001: 3:57 a.m. ET
German electronics, telecoms equipment maker posts profit decline
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LONDON (CNN) - Germany's Siemens on Thursday posted a fall in fiscal second-quarter profits and announced 3,500 more job cuts.
Siemens said net profit, including earnings from its chipmaking unit Infineon, declined 11 percent to  578 million ($520 million) from $653 million in the same three months a year ago.
The power plants-to-cellphones manufacturer said sales rose 8 percent to 20.6 billion, but warned of difficult times ahead.
"We expect an even tougher operating environment in the next months, especially in the information and communications area," said Siemens Chief Executive Heinrich von Pierer.
Siemens said it sold 6.9 million mobile phones, down from 9.3 million in the first quarter and added that it made a loss on the handset business in the quarter. The company declined to give an earnings forecast for the rest of the year.
Siemens said the 3,500 job cuts will come in the telecoms equipment division over the next 18 months, with about half the jobs going in Germany and the rest overseas.
Excluding Infineon (IFIX: Research, Estimates) earnings, Siemens said second-quarter profit before interest, taxes and amortization rose 19 percent to 922 million from 777 million in the same three months of 2000.
These earnings were driven by strong performances in the power generation, medical solutions and transportation systems divisions, the company said.
However, its Osram electric bulb-making business posted static earnings because of the cooling U.S. economy.
Siemens (FSIE) shares fell 2.6 percent to 124 in Frankfurt after the results were announced. 
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