MUNICH, Germany-Siemens AG reported its fourth-quarter results, posting a net profit of $90.6 million, which was an 88 percent decline compared with the year-ago result of $767.3 million.
Profits dwindled in the company’s Communications division, which brought in only $62.2 million in revenues during the fourth quarter as compared to last year’s $335.5 million. The Communications division used to include the company’s mobile phone unit, the loss of which accounted for restructuring costs of $950 million.
In early October, BenQ Corp. completed its takeover of Siemens’ mobile phone business, and the combined entity began operations Oct. 1. Under terms of the agreement, Siemens paid BenQ $303 million and bought a 2-percent stake in BenQ for $61 million. Siemens also took a $121 million write-down related to the transaction.
“Fiscal 2005 was a very dynamic year for Siemens,” said Klaus Kleinfeld, chief executive of Siemens. “We saw healthy growth, notably double-digit growth in orders, and many of our Groups produced strong profit performances. We also completed one of our busiest years of portfolio changes, gaining new strength in power, medical solutions and industrial automation. Furthermore, we took important steps with respect to our Information and Communications businesses. Overall, we delivered $3.6 billion in income from continuing operations, in line with our earlier guidance, despite significant charges.
In September, Siemens announced that it would cut 2,400 jobs in Germany during the next two years as the company set in motion its Fit4More restructuring plan for sustainable, profitable growth.
