Siemens suffers profit slump

ELECTRICAL and engineering giant Siemens reported a slump in full-year profits yesterday as write-offs in its mobile phone business helped drag net income down from €3.4 billion to €2.2bn.

Sales grew 7% to €75.4bn for the 12 months to September, while new orders were 11% ahead at €83.8bn, but a decision to discontinue some of its mobile devices operations wiped €810 million off the bottom line.

There was good news, however, from the company’s Irish operations, which employ 280 people in Cork and 500 in Dublin and Belfast, as Irish revenues soared 24% to €215m. New orders were almost 50% higher at €265m.

Siemens Ireland chief executive Lorenz Zimmermann said the Irish operation performed well and had “exciting” prospects. Siemens moved into wind farm and water technology in Ireland for the first time during the year.

The company landed significant contracts to supply equipment to several hospitals, including a high-value package of new X-ray and imaging equipment at St Vincent’s in Dublin. The wind energy division also got off to a strong start by supplying turbines for Ireland’s biggest wind farm in Meentycat, Co Donegal.

Other major contracts include a €40m Irish Rail deal to upgrade 72 carriages on Dublin’s DART line, and a network equipment agreement with new mobile operator 3.