Chip market stability helps Siemens

Siemens saw sales jump 17 per cent for the six-months ended 31 March. The German company recorded turnover of $33.6 billion, against $28.7 billion for the same period the previous year. Pre-tax profit was $764 million, slightly up on last year’s $753 million. The electronics giant said new orders climbed 10 per cent, largely in the second quarter outside Germany. According to a company statement by Dr Heinrich Pierer, Siemens president and CEO, special factors were no longer burdening performance. "Price developments in semiconductors are not as dramatic as in the last fiscal year… and a new miniature cell phone family is enjoying a major market success following its recent introduction." Last year Siemens closed its Tyneside plant due to the oversupply in the microprocessor market. It then announced it was to open a joint chip venture with IBM and France. ®