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Siemens' sales up as profits fall

 Siemens' sales up as profits fall
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The problems continue for German engineering group Siemens. A day after an internal report revealed that corruption at the company was much more wide ranging than previously thought, it announced its quarterly net profit slumped by two thirds.

But Siemens’ shares rose due to a increase in orders, as noted by chief executive Peter Loscher: “In the second quarter, the volume of orders was up by 12% compared to the same period last year and reached 23 billion euros, which we’re very pleased with. Adjusted for the effects of exchange rates and acquisitions, that represents a growth of 15%.”

Siemens is being investigated in various countries over at least 1.3 billion euros of payments, which the authorities suspect were bribes. Asked about that, Siemens’ top lawyer Peter von Solmssen said: “It’s not acceptable to reach premature conclusions. We live in a world of rights and laws and fair play. In other words: due process.”

Siemens this week said that the scandal has not had an negative effect on its business. The CEO was “guardedly optimistic” about the second half, but warned the global economic slowdown is making some customers cautious.

And the company’s outlook does not include any impact from the corruption probe which could result in heavy fines from the US authorities.

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