Siemens' 3Q Profit Falls 13%Siemens' 3Q Profit Falls 13%

Siemens AG reported that net income fell 13% in its fiscal third quarter to $725.4 million, compared with earnings of about $832.2 million in the same period a year ago. Sales fell 15%, to $19.95 billion, during the quarter ended June 30.

The German industrial concern, which makes products such as power plants, telephone networks, cell phones, and light bulbs, said economic weakness and the strength of the euro against the dollar were partly to blame. "All Siemens' operating groups reported weak sales and orders" compared with a year ago, the company said in a statement. But the report Thursday topped analysts' expectations.

Siemens' big power-generation business saw a 41% drop in earnings, though strength in its medical divisions helped offset weakness in its telecommunication networking business. Siemens' information and communications division posted a $143.5 million loss for the quarter. The company said CEO Heinrich von Pierer would take responsibility for managing Siemens' telecom business.

Mobile phones posted a loss of $48.2 million, on volume of 8.1 million handsets, similar to the level of shipments a year ago.