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Siemens posts solid year
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November 3, 1999: 9:59 a.m. ET
German industrial giant beats expectations with 37% jump in earnings
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LONDON (CNNfn) - German technology and industrial giant Siemens posted a sharp rise in full fiscal year profit Wednesday, beating analysts' expectations.
The company recorded a 37 percent rise in net profit to 37 billion marks ($1.96 billion) for the 12 months ended Sept. 30. The result comfortably beat forecasts of between 3 and 3.2 billion marks.
Shares of the company gained 3.5 percent to a one-year high of 90.84 euros.
Siemens, whose products range from personal computers to high-speed trains and mobile phone, has embarked on a broad restructuring after its stock suffered a series of downgrades because of the diversified nature of its business.
"The numbers are excellent. It shows the impact of the restructuring," BHF-bank analyst Michael Schatzschneider told Reuters.
The company is spinning off non-core assets, such as banking systems, with 1998-equivalent sales of 17 billion marks. Siemens said the disposals will depress revenue next year, but expects profit growth to outstrip sales in 2000.
Siemens' sales over the 12-month period climbed 14 percent to 134.3 billion marks. Fourth-quarter revenue rose 18 percent to 42.1 billion marks while net profit jumped 79 percent to 1.56 billion. 
-- from staff and wire reports
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Siemens
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