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Siemens Medical Solutions shows strong gains while overall income falls

11 November 2005

Siemens has announced a fall in profits from €3405 billion to €2248 billion for the 2005 financial year, and a more drastic fall of 88% to €77 million for the fourth quarter, compared to 2004.

Strong earnings came from Automation and Drives, Medical Solutions, Power Generation, Siemens VDO Automotive and Osram. Its troubled mobile devices business was sold to BenQ Group of Taiwan in the fourth quarter, and Siemens Business Services posted a large loss €690m.

Europe continues to be the strongest region, with a total business volume of €40 billion. Sales in Germany, included in this figure, came to €15.7 billion. Siemens showed high sales growth of 10 % in the U.S.

Medical Solutions contributed €976 million in Group profit in fiscal 2005. Diagnostics imaging solutions led growth for the year, resulting in an 8% rise in sales, to €7.626 billion, and a 6% increase in orders, to €8.641 billion. During the year Medical Solutions acquired CTI Molecular Imaging, Inc., which strengthened its ability to discover, develop and deliver molecular imaging solutions.

In the fourth quarter, Group profit of €302 million was up 11% year-over-year, and sales and orders both rose to records of €2.275 billion and €2.569 billion, respectively.

"Fiscal 2005 was a very dynamic year for Siemens,” said Siemens CEO Klaus Kleinfeld in presenting preliminary results for the year. “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 €3.1 billion in income from continuing operations, in line with our earlier guidance, despite significant charges."

Siemens' share prices rose slightly in Frankfurt and New York, but continued falling in London following the financial statement.


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