Siemens fine to wipe profits

Filed in archive corporate crime on January 23, 2008

Siemens faces a fine of 4 billion euros ($5.8 billion), a figure that would wipe out a full year's profit, after a probe by the US Securities and Exchange Commission, reports Bloomberg.

For the year ended September 30, Siemens had a profit of 3.9 billion euros ($5.6 billion), the foreshadowed fine is way more than the company has been expecting and is on top of the 201 million euro ($292 million) fine it received in October in connection with bribery activities in its communications equipment business.

Reuters reports that the company expects to know exactly what's ahead within a few months.

In the meantime, Siemens new chief executive, Peter Löscher is working hard to tidy up the lines of reporting so that the problems don't re-emerge but the problems keep coming, reports the New York Times with former Siemens employees expected to be indicted.