Siemens profits up but no answer on phones

German engineering conglomerate Siemens posted forecast-beating first-quarter profits today but failed to unveil a plan to stop…

German engineering conglomerate Siemens posted forecast-beating first-quarter profits today 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 per cent in the December quarter, but the uncertain future of its high-tech businesses meant the company could not give a clear outlook.

Chief Executive Mr 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.

Siemens shares fell as much as 1.5 per cent in early trade but reversed losses after Mr von Pierer, who hands over to new CEO Mr Klaus Kleinfeld later today, said a solution would be seen "within the next few weeks".