Siemens IT division posts £28m loss

Project review charges take their toll in Q2 2008 results

Siemens IT solutions and services has contracts with the NHS and the BBC

Siemens IT Solutions and Services, the division of German engineering giant Siemens which recently signed contracts to implement large IT projects at the NHS and the BBC, posted disappointing results for the second quarter of fiscal year 2008.

The division’s group profits slipped to a €35m (£28m) loss, from an €80m profit in the first quarter of 2007.

The company blamed the shortfall on charges related to project reviews. The division’s total revenues for the quarter fell slightly to €1.27bn from €1.35bn a year earlier.

Siemens as a whole fared little better, with its power generation and transportation systems divisions also posting losses. Reported profits were €2.9bn for the quarter, down from €3.3bn year-on-year, despite revenues rising from €36.5bn to €38.6bn in the same period.