Siemens Aims To Cut Costs To Restructure Mobile Operations

MUNICH -(Dow Jones)- Siemens AG (SI) Tuesday said it will start restructuring its ailing mobile phone unit, while keeping all future options open.

A cost-cutting program in the triple-digit million euro sum will help to improve our cost base significantly, communication division Chief Executive Lothar Pauly told reporters at a Siemens' communications leadership event in Munich.

He said the communication division, that contains Siemens' fixed-line and mobile communications' businesses, also aims to cut development costs by 15% in the next three years.

Pauly reiterated Siemens' mantra for the division's future, though, saying that the company wants to keep all four options - namely to sell, close, fix or partnering - open.

-By Mathias Schmidt, Dow Jones Newswires; +49 (0) 89 5521 4030, mathias.schmidt@dowjones.com

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Posted to the site on 8th March 2005