Siemens Adjusts ’06 Profit

Siemens AG has adjusted its net income for fiscal year 2006 because of more tax charges related to an ongoing corruption scandal.

The Munich-based group, Europe’s biggest engineering company, said in a statement released late Monday that it lowered its net profit for the year to euro3.03 billion (US$4 billion), down from the euro3.11 billion (US$4.1 billion) it reported last month.

“In connection with the investigation launched by German state prosecutors on Nov. 15, 2006, Siemens initiated an internal investigation into certain transactions and payments which led to adjustments,” the company said in a statement to the Frankfurt stock exchange.

The additional deferred and current income tax charges totalled euro168 million over a period of approximately seven years. Of that, euro73 million was reflected in the company’s 2006 financial report and related to fiscal years 2004-2006.

The remaining euro95 million in additional income tax expenses were related to the years before fiscal 2004.

Investigators in Germany, Italy and Switzerland are investing the alleged embezzlement of euro200 million by some Siemens workers, but have not targeted the company itself.

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