MUNICH-Siemens reported a 17-percent earnings increase to $1.12 billion for the first nine months of fiscal 1999, ended June 30. In addition, sales were up 12 percent to $49.4 billion and new orders up 11 percent to $52.3 billion.
Virtually all of Siemens’ groups contributed to the nine-month earnings increase, the company said. The Information and Communication Networks (ICN) Group posted an EBIT (earnings before interest and taxes) of $365 million, second highest after the company’s Automation and Drives Group.
In addition, its Information and Communication Products Group recorded a nine-month EBIT of $257 million, of which $157 million was in the third quarter. “This result reflects the success of the group’s new cellphone models,” said Siemens. “Cellphone sales are expected to almost double to 11 million units by the end of the fiscal year.”
Siemens’ international sales were a major contributor to the company’s growth. While domestic sales rose 2 percent to $14 billion, international sales for the nine-month period grew 17 percent to $35.5 billion.
In other news, Siemens said its ICN group has founded a new U.S. company, Unisphere Solutions, to develop Internet-related technologies. Siemens is founding a parent organization, under which Unisphere will operate. In addition, the headquarters of the Information & Broadband Division are being transferred from Munich to the United States on Oct. 1.
