Siemens Ltd, the engineering giant, has reported a loss of Rs 12.99 crore for the six-month ended March 1998 compared with a loss of Rs 60.63 crore in the corresponding period last year. The loss was registered on a turnover of Rs 512.2 crore, a decline of 11 per cent as against Rs 576.1 crore in the previous year.
J Schubert, managing director, Siemens Ltd, said, "although considerable efforts have resulted in reducing the losses, we have to further bring about improvements in our productivity, cost structure and the quality of products and services. This will help us to maximise customer benefits and attain our goal of becoming a world-class company."
During the six months under review, the company's order book declined by 26 per cent as it received new orders worth Rs 420.6 crore compared with Rs 565.1 crore for the same period in the previous year.
The company performance has improved with operating profit before interest and depreciation at Rs 58.43 crore compared with Rs 2.24 crore and total expenditure was also lower at Rs 467.4 crore against Rs 565.11 crore. However, the outgo as a result of extra-ordinary items stood at Rs 16.38 crore. The extra-ordinary items relate to costs of restructuring the business operations of the company and profit on sale of the company's property.
In its press release, Siemens pointed out that "the infrastructure business, in particular power generation, was negatively affected due to the continuing showdown in the core sector as a result of project delays and lack of clarity in the reform process. As a consequence, the industry segment is also experiencing a downturn." The decline in the turnover is due to competitive pressures which have induced erosion in a shrunk market, the release adds. The company is carrying out a four-point program -- improving cost structure, productivity and quality, reviewing business portfolio, restructuring balance sheet and asset disposal and amplified focus on human resource development -- for a turnaround.
