First-half results don’t impress Siemens

Article

German technology conglomerate Siemens AG enjoyed healthy revenue growth of 15% for the financial period from October 1997 to June 1998, but the Munich company said it was unhappy with its 5% increase in earnings for the period. Siemens plans to

German technology conglomerate Siemens AG enjoyed healthy revenue growth of 15% for the financial period from October 1997 to June 1998, but the Munich company said it was unhappy with its 5% increase in earnings for the period. Siemens plans to accelerate its restructuring program to bring profit growth to acceptable levels.

Siemens implemented a restructuring last year to improve the company’s profit outlook, divesting noncore businesses and cutting costs in several divisions (SCAN 9/17/98). Earnings growth since then has not met the company’s expectations, however, according to Siemens AG president and CEO Heinrich von Pierer. Siemens will pursue additional moves, such as divestitures and reorganizations, he said.

The company’s Medical Engineering Group was cited as an example of a successful turnaround effort. The division was one of the groups reorganized last year, and costs associated with the effort contributed to a major loss for the unit in 1997. With the restructuring behind it, Medical Engineering turned in double-digit growth and should achieve a profit this year of hundreds of millions of marks, Pierer said.

Newsletter

Stay at the forefront of radiology with the Diagnostic Imaging newsletter, delivering the latest news, clinical insights, and imaging advancements for today’s radiologists.

Recent Videos
CT-Based Deep Learning Model May Reduce False Positives with Indeterminate Lung Nodules by Nearly 40 Percent
Leading Breast Radiologists Discuss Rise of Breast Cancer Incidence in Women Under 40
New Research Examines Radiation Risks with CT Exposure Prior to Pregnancy
© 2025 MJH Life Sciences

All rights reserved.