Siemens Deciding on Fate of Director Kleinfeld

Siemens Supervisory Board will decide on Wednesday if it will extend contract with their executive director.

Supervisory Board of the German electronics and engineering giant Siemens will decide on Wednesday if it will extend contract with the current executive director Klaus Kleinfeld, concerning attempts to prevail the harmful corruption scandal.

Claims of a spillover of 420 million euro even to illicit accounts in the past seven years overshadowed solid business results this company has made lately.

Company`s results, announced on Tuesday evening, show a rise of net profit in the second quarter by 36 percent to 1.26 billion euro, which exceeds analysts` expectations on net profit in the amount of 1.19 billion euro. Income was increased in this period by 10 percent to 20.63 billion euro.

Siemens announced an increase of orders by 9.0 percent to 23.47 billion euro and a rise of profit fro this group by 49 percent to 1.96 billion euro.

Kleinfeld was acquitted for participating in a corruption scandal which seriously shook up the company. But, the media report that the Supervisory Board has already started searching for his possible heir. Kleinfeld`s contract expires in September.

A more detailed report for the second quarter will be announced on Wednesday.