Siemens Spend 1bn Euros To Restructure IT Business

Siemens is restructuring its IT outsourcing business SIS and other units that are not performing as well as its industry, healthcare and energy divisions, according to the Financial Times.

The company is to spend €1bn on restructuring SIS and several other units struggling to shrug off the world financial crisis, said Joe Kaeser, Siemens' chief financial officer.

The industry, healthcare and energy units, where Siemens cut administrative and sales costs before the onset of the economic crisis in 2008, produced strong second quarter financial results.

Siemens has forecast in its second-quarter report the operating profit of these three sectors will rise to more than €7.5bn in the fiscal year, outstripping the previous year's figure of €7.47bn.

"We are profiting in particular from measures we initiated early on to strengthen our competitiveness. In times of crisis we very intentionally maintained our innovation power," said Peter Loscher, Siemens' chief executive.

Siemens reported that total profit for the quarter rose 16 per cent year-over-year, to €2.138bn, on higher profit in all sectors.

Income from continuing operations was €1.484bn, up 55 per cent from the second quarter a year earlier, and net income of €1.498bn was 48 per cent higher.

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