MUNICH, Germany-Siemens AG posted a drop in its quarterly profit, partially due to the offloading of its mobile-phone business to Taiwanese company BenQ. Siemens’ net profit tumbled from $984 million in the year-ago quarter to $470 million in the quarter ended June 30.
Siemens announced last month that BenQ would take over its loss-making mobile-phone business. Although the exact terms of the deal were somewhat cloudy, Siemens essentially will pay BenQ $303 million to take over its handset business and will buy a 2-percent stake in BenQ for $61 million. Siemens also will take a $121 million write-down related to the transaction.
BenQ shareholders recently approved the transaction.
Even without the mobile-phone business, Siemens’ Communications division is still suffering. The business posted a loss in the company’s fiscal third quarter, a reverse of the $252 million in profits from the same quarter a year ago. Siemens’ Communications unit houses its wireless and wireline infrastructure business and its information-technology operations. The unit is one of numerous Siemens businesses spanning the industrial, medical and transportation industries.
