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Article: Siemens VDO succeeds in cutting costs.(Suppliers)
- Article from:
- Automotive News
- Article date:
- September 8, 2003
CopyrightCOPYRIGHT 2003 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Edmund Chew
A strong cost-cutting drive has reversed the losses at Siemens VDO, a supplier of vehicle electronics.
The company, created in April 2001 by a merger between Siemens Automotive AG and Mannesmann VDO, had an operating loss of $283 million in its fiscal year ending Sept. 30, 2001.
A year later, Siemens VDO posted an operating profit of $70.3 million, helped by the $60.5 million sale of its Hydraulik-Ring business.
In the third quarter of the current financial year, the company reported a profit of $120 million on sales of $2.3 billion, despite a 6 percent drop in sales.
Siemens VDO, the automotive subsidiary ...