Siemens Stuck in a Rut

No matter how bad your day was yesterday, executives at Siemens AG probably had it worse.

Not a good day for Siemens AG.

The German company released a whole slew of bad news: more evidence of corruption, bribery, and general unscrupulous activities were uncovered, an early big-time loss for the joint venture with Nokia (almost 371 million euros), weaker than expected earnings, and finally the purchase of a US "clinical-diagnostics" company that Siemens just might've paid a little too much for.

Chief Executive Peter Loescher joined the conglomerate only a little less than a month ago, after a stint at American drug company Merck.

Shares of Siemens AG fell 6% on the news.

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Siemens Stuck in a Rut

No matter how bad your day was yesterday, executives at Siemens AG probably had it worse. Not a good day for Siemens AG.

The German company released a whole slew of bad news: more evidence of corruption, bribery, and general unscrupulous activities were uncovered, an early big-time loss for the joint venture with Nokia (almost 371 million euros), weaker than expected earnings, and finally the purchase of a US "clinical-diagnostics" company that Siemens just might've paid a little too much for.

Chief Executive Peter Loescher joined the conglomerate only a little less than a month ago, after a stint at American drug company Merck. Shares of Siemens AG fell 6% on the news.

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Nokia Siemens Networks lands India deal

Nokia Siemens Networks won a $900 million contract from India's largest mobile phone operator, Bharti Airtel Ltd., to help expand its communications network, both companies said Tuesday.

Under the two-year, 660 million euro contract, Nokia Siemens Networks will install 1.8 million ports and also set up an international calling card prepaid service that will help the Indian company add 4.5 million new customers, a joint statement said.

Nokia Siemens Networks is a joint venture between Finland's Nokia Corp. and Germany's Siemens AG.

"Bharti Airtel is undertaking a massive expansion and integration exercise across its mobile and fixed (landline) networks to significantly augment its service delivery capacity," Manoj Kohli, the company's president, said in the statement.

Nokia Siemens will help in Bharti Airtel's expansion programs in eight of the nation's 23 service zones, according to the company.

Simon B Wylie, chief executive of Nokia Siemens, said in the statement that the contract will help Bharti Airtel "tap new market opportunities driven by convergence, optimize network performance and costs and continue to grow market share."

Over the past year, India has emerged the world's fastest growing mobile phone market, adding nearly 6 million new connections every month.

In May, Nokia Siemens won a similar contract valued at $500 million from another leading Indian mobile phone company — Mumbai-based Idea Cellular Ltd.

On Monday, Nokia Siemens said it would invest $100 million to build a manufacturing plant for wireless network equipment in the southern Indian state of Tamil Nadu and expand its research center in the city of Bangalore.

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