Siemens’ Q3 Profit Boosted by Sale of Auto Parts UnitPublished

Scandal hit German engineering group Siemens posted a sharp increase in its third quarter net profit but the result was unlikely to calm restive shareholders. Net profit leapt from 788mn euros ($1.15bn) to 6.5bn owing to the sale of the auto equipment parts company VDO, which contributed around 5.4bn euros to the results, a statement said.

Operating profit in the third quarter, which began on October 1, increased by 16% to 1.7bn euros, on sales which grew by 10% to 18.4bn. Operating profit was underpinned by strong results in Siemens’ Automation and Drive division, along with Industrial Solutions and Services and Power Transmission and Distribution, the company said.

The company also announced the launch of a share buyback programme unveiled in November, worth 10bn euros through 2010. But shareholders may not be satisfied as they gather in southern Munich for a general assembly under a cloud of scandal that has rocked the company.

Siemens made no direct comment in its statement but noted costs of 127mn euros in the last three months of 2007 for legal and investigative fees.

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