Siemens healthcare unit profits; company sues former execs over bribery scandal

Siemens reported a rise in both orders and sales in the company's fiscal third quarter of 2008, despite a net profit drop of 31 percent compared to a year ago.

The company said that profits for its industry, energy and healthcare units climbed 33 percent to $3.23 billion in the third fiscal quarter of 2008, compared to the same quarter in 2007. In particular, energy and healthcare led growth, with an advance in sales of more than 10 percent, compared to the third fiscal quarter of 2007.

The third quarter earnings report also followed Siemens' restructuring into three key units–industry, energy and healthcare–as well as new moves by the company to confront the bribery scandal.

On Tuesday, Siemens announced that it was planning to seek compensation from former top company executives who had failed to adequately handle the bribery scandal.
 
The company said it bases its claims on breaches of their organizational and supervisory duties in view of the accusations of illegal business practices and extensive bribery that occurred in the course of international business transactions in the years 2003 to 2006 and the resulting financial burdens to the company.

The eleven former members of the corporate executive committee involved in the bribery scandal will be given an opportunity to state their positions on the accusations before legal action for damages is taken, according to Siemens.

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