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Dr. V
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JD/MPP, LL.M. International Law / Grad Certs.(Global Security, US Defense Policy, European History) MA Economics / Mgt. & Leadership Executive Education MIT Sloan School of Mgt. / Member Royal Society of Economics, Member Royal Institute of International Affairs (Chatham House), Member European... More
  • SIEMENS Disappoints AGAIN 4 comments
    Apr 25, 2012 6:48 AM | about stocks: EGY

    67% Quarterly loss just reported on BLOOMBERG by Caroline Hyde. Linzie Janis had CEO Peter Loescher live on BLOOMBERG TV this morning at 7:45 AM. He claimed they were "over ambitious" and they "MUST learn as they go", what kind of risk assessment is that? Sounds like "shooting in the dark" to me.

    After tax yearly profits to drop 1 BIL Euros, that's 25% of their yearly profit totals.

    Loescher had this last year with Q2-Q3 profits down over 60%, and a MASSIVE loss of 98% in the Medical Solutions segment.

    BIG trouble for Gemany's "strongest & largest" company. Shares are up slightly on the bad news as investors scramble to drive price higher before the dumping begins as we saw last year Q2 on Q3.

    DISCLAIMER: You couldn't force me to buy shares in SIE.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: EGY
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  • faustius
    , contributor
    Comments (488) | Send Message
    If I'm reading those non-Gaapy figures in their 6-k correctly, most of the drop in revenue and new orders occurred in Europe, with the biggest year over year declines in domestic German orders. Should we expect other German companies to post similar results going forward?
    25 Apr 2012, 09:20 PM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    Author’s reply » Yes, most of the reports about the German Industry's current "boom" are a farce.


    Export dropped, (no secret), and production cuts have taken place, new orders being cancelled. Unemployment has risen slightly, so Germany changed the way they report it.


    Germany likes to put positive spin on negative diagnosis.


    *ANY company that claims Revenues of 77 BIL Euros, and ONLY 5 BIL Euros profit after tax, bears an investigation. This is the company that paid the largest fine for corruption in the history of the planet.


    I worked with, and for SIEMENS, during and after the bribery scandal, and have first hand knowledge of their business tactics.


    They (SIEMENS) have been suspended by the World Bank multiple times in recent years, and continue to supply illegal Nuclear Technology and Contract Service Support to Iran, in direct violation of UN Security Council Resolution and International Law.


    At the annual shareholder meeting, which took place on January 24, 2012, in the Olympiahalle in Munich, a member of STOP THE BOMB confronted the Siemens board with questions regarding Siemens' Iran business. The Siemens directors declared that they will continue to fulfill their "legal obligations" with Iran. The trade volume with Iran deals in 2011 amounted to 450 Million Euro. Siemens still runs a department in Tehran with 185 workers. The trade volume decreased 34% compared to the preceding year, which shows that it amounted to round about 682 Million in 2010.




    (Here you will find a list of German companies in violation.)


    Remember SIEMENS is the standard by which all other German firms are judged, when they are down, everyone is down, all German industrials are dependent upon SIEMENS, as they have their hands in every pocket in Germany.


    SIEMENS currently controls: (in Germany)
    - Complete monopoly with ALL Police / Fire / Emergency Systems
    - Traffic Management for every major city (every traffic light)
    - complete rail systems (Deutsche Bahn)
    - all airports and airport infrastructure / technology
    - sanitation and incineration for every major city
    - security systems (gate and time control) for most German companies
    - all power grids
    - every harbor and shipping traffic
    - banking systems & technology
    - schools & universities
    - all hospitals & health facilities
    - all German telecoms (Deutsche Telekom)
    - all aerospace technology systems
    - most German automotive production (programable contro systems)
    26 Apr 2012, 05:30 AM Reply Like
  • faustius
    , contributor
    Comments (488) | Send Message
    Thanks for the additional detail. The "As Siemens goes, so goes Germany", was my line of thinking. If I had some free time (which I don't), I'd probably try to compile a list of German companies that are reporting soon, haven't reduced their forward earnings forecasts, and are heavily dependent on domestic sales. I would expect that list would be posting quite a few earnings misses going forward.


    Regarding Siemens compliance history, I do assume that companies with a track record of violating the law, are not worth investing in, as their financials can't be trusted. Their business with Iran reminds me of the media frenzy here in the U.S. regarding dual-use tech sales to Iraq during the build up to the invasion.


    Conservative media sources, eager to demonize Europe as a whole, kept deriding European companies without ever naming who was selling to Iraq. I started digging, and found an online list of every company caught selling dual use tech to Iraq (I highly doubt that list is still out there). The ironic thing is two thirds of the list were U.S. pharmaceutical companies. Sometimes it seems that finding a company that doesn't violate the law is like trying to find an honest used car salesman.
    26 Apr 2012, 11:00 PM Reply Like
  • Dr. V
    , contributor
    Comments (1168) | Send Message
    Author’s reply » That is very true.


    While I am not out to smear SIEMENS, I am trying to bring the facts to light, that they remain the enabler for Iran. The part most don't know is, this started in 1974. Why Germany is allowed to continue to act with impunity, thumbing their noses at the UN and the rest of the world, is a mystery.


    They (Germany) love to knock the US Military Policy, (while enjoying the safety of US Military occupation which protects them) with their arrogant "moral superiority", yet Germany has somehow become one of the world's largest weapons exporters, in direct violation of treaties signed after the War, which forbid them from producing ANY weapon or weapon component.


    Again, they get a pass.


    The civil unrest is growing rapidly in Europe, with violence on the rise, Germany at it's center, with unbearable austerity measures being rammed down the throats of the periphery.


    WSJ, Bloomberg have both reported that Germany is dragging Europe down with these draconian policies, something has to give.
    27 Apr 2012, 03:18 AM Reply Like
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