Siemens posts first-quarter profit but hints at job cuts

Siemens is hinting at further job cuts after revealing a first-quarter profit.

Siemens is hinting at further job cuts after revealing a first-quarter profit.

The company has reported a net profit of £334 million sterling, compared with a net loss of £681 million in the preceding quarter.

Core profits - before one-off costs and interest payments - hit £302 million.

Siemens has benefited from cost savings following job cuts at its mobile phone division.

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But it says further measures may be needed to reduce costs at its information and communication networks.

The division, known as ICN, lost £77 million - down from a £93 million profit the year before.

Sales, excluding Infineon, rose by 7 per cent to £12.7 billion, while orders rose by 12 per cent to £15.4 billion.

Siemens says: "Sales and orders declined significantly at Information and Communication Networks.

"ICN is rigorously pursuing its restructuring programme announced last October. At the same time, it is evaluating whether additional measures are necessary."