Siemens Aktiengesellschaft / Profit Warning
17.03.2008
Release of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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As previously announced, Siemens AG has launched an extensive review of
major projects in the current quarter, focusing particularly in the
Divisions Fossil Power Generation of the Energy Sector, the Mobility
Division in the Industry Sector, and Siemens IT Solutions and Services.
The results of the review so far indicate a substantial impact on earnings
in the current fiscal year. Nevertheless going forward, the path to
profitable growth has been charted. The commitment to the targets for 2010
is confirmed. Definite progress toward these targets is expected in 2009.
Siemens expects the negative impact on earnings to amount to approximately
900 million in the current quarter. The expectation is that this amount
represents the largest piece of any additional financial burdens for 2008.
In the Fossil Power Generation Division, the large number of turnkey
projects that have accumulated since 2004 has had an adverse effect. New
exposure can be attributed to structural challenges in the supplier markets
and to delays recruiting experienced project engineers.
New exposure in the Mobility Division resulted from delays in the awarding
of major projects as well as from the ongoing product rehabilitation
programs in the Combino business.
At Siemens IT Solutions and Services, new risks arose in UK projects,
including among others a customer's cancellation of a major order.
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Information and Explaination of the Issuer to this News:
The conference call for the press is starting on Monday at 8.00 a.m. CET,
the analyst call at 9.00 a.m. CET. Both can be followed live on the
internet, the press conference call under www.siemens.com/conferencecall
and the analyst conference call under www.siemens.com/ir.
Disclaimer
This document contains forward-looking statements and information that
is, statements related to future, not past, events. These statements may be
identified by words such as 'expects,' 'looks forward to,' 'anticipates,'
'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' 'will,' 'project' or
words of similar meaning. Such statements are based on our current
expectations and certain assumptions, and are, therefore, subject to
certain risks and uncertainties. A variety of factors, many of which are
beyond Siemens control, affect our operations, performance, business
strategy and results and could cause the actual results, performance or
achievements of Siemens to be materially different from any future results,
performance or achievements that may be expressed or implied by such
forward-looking statements. For us, particular uncertainties arise, among
others, from changes in general economic and business conditions (including
margin developments in major business areas); the challenges of integrating
major acquisitions and implementing joint ventures and other significant
portfolio measures; changes in currency exchange rates and interest rates;
introduction of competing products or technologies by other companies; lack
of acceptance of new products or services by customers targeted by Siemens;
changes in business strategy; the outcome of pending investigations and
legal proceedings, especially the corruption investigations we are
currently subject to in Germany, the United States and elsewhere; the
potential impact of such investigations and proceedings on our ongoing
business including our relationships with governments and other customers;
the potential impact of such matters on our financial statements; as well
as various other factors. More detailed information about certain of these
factors is contained throughout this report and in our other filings with
the SEC, which are available on the Siemens website, www.siemens.com, and
on the SECs website, www.sec.gov. Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in the
relevant forward-looking statement as expected, anticipated, intended,
planned, believed, sought, estimated or projected. Siemens does not intend
or assume any obligation to update or revise these forward-looking
statements in light of developments which differ from those anticipated.
EBITDA (adjusted), Return on capital employed, Free cash flow, Cash
conversion and Net debt are Non-GAAP financial measures. A reconciliation
of these amounts to the most directly comparable IFRS financial measures is
available on our Investor Relations website under www.siemens.com/ir,
Financial Publications, Quarterly Reports. 'Group profit from operations'
is reconciled to 'Income before income taxes' of Operations under
'Reconciliation to financial statements' in the table 'Segment
Information.'
Siemens Investor Relations
Tel: +49-89-636-32474
Fax: +49-89-636-32830
Mail: Investorrelations@siemens.com
DGAP 17.03.2008
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Language: English
Issuer: Siemens Aktiengesellschaft
Wittelsbacherplatz 2
80333 München
Deutschland
Phone: +49 (0)89 636-00
Fax: +49 (0)89 636-32908
E-mail: investorrelations@siemens.com
Internet: www.siemens.com
ISIN: DE0007236101
WKN: 723610
Indices: DAX, EURO STOXX 50
Listed: Regulierter Markt in Berlin, Frankfurt (Prime Standard), Hannover, München, Hamburg, Düsseldorf, Stuttgart;
Terminbörse EUREX; Foreign Exchange(s) London, NYSE, SWX
End of News DGAP News-Service
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DGAP-Adhoc: Siemens corrects earnings forecast for the current fiscal year
| Source: EQS Group AG