Restructuring at Nokia Siemens Networks to Weigh on Siemens

FRANKFURT -(Dow Jones)- Higher restructuring costs at Nokia Siemens Networks will indirectly weigh on Siemens's next quarterly earnings, a spokeswoman said Thursday.

She declined to give details, referring to the release of quarterly results on Nov. 8.

The spokeswoman noted, however, that in the event Nokia Siemens Networks needs additional capital, Siemens doesn't have any ongoing financing obligations to it.

The performance of the Nokia Siemens Networks joint venture will be reflected in Siemens' operating unit Strategic Equity Investment.

While the two companies hold equal stakes in the joint venture, the operating result of NSN is recorded by Nokia.

Nokia said earlier Thursday that it would record around EUR2 billion in restructuring costs for the joint venture, up from a previously estimated EUR1.5 billion.

At the same time, Nokia said it expects EUR500 million more than previously estimated in annual synergies, or EUR2 billion a year from the end of 2008. The higher restructuring costs will be covered by the higher synergies.

Nokia plans to book the majority of the remaining costs in the fourth quarter. At the end of the third quarter, the company already had booked EUR991 million.

-By Alexander Becker, Dow Jones Newswires; 49-69-29-725- 500; industry.de@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 18th October 2007