View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
November 16, 1995

SIEMENS-NIXDORF PUTS FLESH ON THE BONES OF ITS “FIRST EVER PROFIT” STORY

By CBR Staff Writer

Siemens Nixdorf Informationssysteme AG, as reported last week (Siemens does like to stage a dance of at least seven veils over these things) posted a profit for the year to September, its first since it was created; yesterday it flew the world to Frankfurt to announce ambitious plans to become Europe’s leading computer vendor. We have to grow outside Germany substantially faster than the market, said chief executive Gerhard Schulmeyer. We are putting tremendous pressure on ourselves to catch up. We want to be the leading information technology maker in Europe. The Paderborner saw a $16.4m net profit for the year to September 30, compared with a loss of $250m the previous year. Pre-tax profit was $44m compared with a $227.5m loss and it has lost some $1,425m in the four years since Siemens acquired Nixdorf Computer AG in October 1990. The company credits the turnaround to higher volumes and productivity. Sales last fiscal rose to $9,130m from $8,350m, and the computer unit is now Siemens’ largest division, although IBM Europe is still three and a half times the sixe. Schulmeyer said overall sales would show a double-digit increase in the current year and thereafter, but declined to forecast whether profit would be up, down or flat. We must do better, he said simply. New orders rose to $9,270m from $8,350m a year ago, although on a local currency basis, orders rose 23% and sales 17% in the year – underlining the pain the whole of Europe will inflict on itself vis a vis the rest of the world if it tries to move to a single currency. Germany now accounts for 65% of sales, but it wants to do a third in the rest of Europe, a third in the rest of the world. It cut 2,000 jobs last year, 1,000 more will go this year.

Topics in this article :
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU