Siemens in the second quarter

RNS Number:3411K
Siemens AG
24 April 2003

Siemens in the second quarter (January 1 to March 31) of fiscal 2003



*         Net income for the second quarter of fiscal 2003 was Euro568 million.
Second-quarter net income of Euro1.281 billion a year earlier included a gain of
Euro604 million from sales of shares in Infineon Technologies AG. Net income for
the first six months was Euro1.089 billion. First-half net income a year ago was
Euro1.819 billion, including Euro936 million in gains from sales of Infineon shares.

*         Group profit from Operations was Euro1.073 billion, compared to Euro1.086
billion in the second quarter a year ago. Anticipated lower earnings at Power
Generation were offset by earnings growth at Siemens VDO Automotive, Automation
and Drives, Power Transmission and Distribution, and Osram. Group profit from
Operations for the first six months was Euro2.170 billion, up 11% from Euro1.951
billion in the same period a year earlier.

*         Sales of Euro18.230 billion and orders of Euro19.084 billion were down 14%
and 15%, respectively, from the second quarter a year earlier. Excluding
currency translation effects and the net effect of acquisitions and
dispositions, sales and orders decreased 5% and 7%, respectively. First-half
sales were Euro37.075 billion, down 12% year-over-year, and orders were Euro39.229
billion, down 18%. Excluding currency and deconsolidation effects, sales and
order were down 4% and 11%, respectively.

*         Net cash from operating and investing activities was Euro1.398 billion,
compared to second-quarter net cash of Euro1.433 billion a year earlier. Net cash
from operating and investing activities for the first six months was Euro261
million after a supplemental cash contribution of Euro442 million to Siemens'
pension trusts in Germany and the U.K. In contrast, first-half net cash of
Euro1.740 billion a year earlier included Euro945 million in net proceeds from
portfolio activities.



Note: Siemens' implementation of new Securities and Exchange Commission (SEC)
rules, effective March 28, 2003, includes the use of certain new terms. These
terms are defined in a separate document titled "Terminology Update," which is
included with the Key Figures table accompanying the Earnings Release.



"Despite the difficult macroeconomic conditions and declining business volumes,
many of the Groups are on track to achieve their Operation 2003 earnings
targets," said Siemens CEO Heinrich v. Pierer. "I am satisfied with our results,
including another positive development in net cash. However, the ongoing
weakness in capital spending across our major regions and markets is a concern.
We will adjust our resources and investment plans appropriately in the event
that it becomes necessary."


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