German electronics conglomerate Siemens AG’s said lower restructuring costs and favorable currency trends contributed to the rise in group net profits for the six months to March 31, up 15% at the equivalent of $714m, and it stands by its forecast of 20% profit growth for the year ending September 30. However, its shares took a hit because the profit level was below market expectations. The semiconductors group again posted the strongest earnings, and the computer subsidiary Siemens NixdorfInformationssysteme AG showed steady international growth. Its personal computer business remained the unit’s growth driver. Siemens said international growth more than compensated for weaker trends in Germany, where the economy is sliding back into recession. Sales were up 6% to $2.8bn and orders rose 5% to $3.2bn. International orders were up 8%, boosted particularly by the Asia-Pacific electrical markets and stronger business in North and South America. Eastern European orders were also well above average, Siemens said. The public communications networks group benefited from digitization of Germany’s telephone network and in the private communications systems group, Siemens said business in terminals and cellular phones, applications and networks was especially strong. Semiconductor growth was high, and the company expanded production, but growth has flattened out, it said. The company has added 8,000 workers outside Germany, bringing its workforce to 381,000 worldwide. The company’s shares fell from a session high of $555 to $551, before recovering slightly before the close to $552.
