German engineering conglomerate Siemens posted forecast-beating first-quarter profits on Thursday but failed to unveil a plan to stop its struggling mobile phones unit from bleeding the company's earnings. Solid profit growth at some of its traditional industrial units helped Siemens increase operating earnings by 5 percent in the December quarter, but the uncertain future of its high-tech businesses meant the company could not give a clear outlook.
Chief Executive Heinrich von Pierer said a plan of action for mobile phones would be worked out "quickly but without undue haste", after the company reported continuing losses, falling prices and lower sales volumes at the unit.
Bear Stearns technology analyst Axel Funhoff singled out Siemens's transport unit - which made a small profit instead of the expected loss as a solution to technical problems with a series of trams appeared to be solved - as a positive surprise.
Siemens reported operating profit of 1.433 billion euros ($1.87 billion), at the high end of forecasts in a Reuters poll of 23 analysts.
Sales missed forecasts, falling 1 percent from the year-ago period to 18.167 billion euros, but order intake grew 5 percent to 21.537 billion and net profit exceeded the top of the poll range, growing 38 percent to 1.001 billion euros.