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Siemens scales down wind manufacturing plans in India on the back of disappointing earnings

Siemens Ltd. declared its results for the financial year 2012 today. The Company registered Sales of Rs. 12,708.1 crores, a rise of 8% over Sales of Rs. 11,818.3 crores in FY 2011. Profit before Tax, before exceptional items and prior-period items, were down by 43% compared to the preceding year.

For the fourth quarter ended September 30, 2012, Siemens Ltd. registered Sales of
Rs. 3,269.4 crores, down by 6% over the same period last year, while recording a profit of Rs. 49.6 crores before tax and before exceptional and prior-period items of Rs. 120.8 crores.

During the quarter, the Company reviewed the plans for the wind energy business and its localization activities. Wind energy solutions will be developed on a case-to-case basis for the Indian market by leveraging existing global Siemens AG manufacturing capacities. Hence, an exceptional item for an impairment estimated at Rs. 120 crores was booked in the quarter.

Dr. Armin Bruck, Managing Director, Siemens Ltd., said, “Our overall results reflect the slowdown in the Indian economy. Higher project costs and unbooked profits due to customers delaying offtake partly affected the company’s profitability. The performance is below our own expectations. An improvement in the economy aided by quicker government approvals for infrastructure projects in sectors such as power and railways would positively impact our outlook.”

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