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Siemens' Corruption Issues

Posted on July 05, 2009

Siemens (SI) has been fined 100 million dollars over fifteen years, and barred from bidding on the World Bank's portfolio. The World Bank's portfolio is worth about 140 million dollars sales a year to Siemens.SI's PM is usually below 5%, but let's be conservative and reduce Siemen's profit 10% PM. Subtract the present value of 100 million dollars fine at 10% over fifteen years and 14 million earnings a year PV, and you have a net decrease in PV of $0.0724, $0.65 at 9x PE....

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