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Siemens Adjusts '06 Profit

Siemens adjusted its net income for fiscal year 2006 because of more tax charges related to an ongoing corruption scandal.

The Munich-based group, Europe's biggest engineering company, said in a statement released late Monday that it lowered its net profit for the year to 3.03 billion euros ($4 billion), down from the 3.11 billion euros ($4.1 billion) it reported last month.

"In connection with the investigation launched by German state prosecutors on Nov. 15, 2006, Siemens initiated an internal investigation into certain transactions and payments which led to adjustments," the company said in a statement to the Frankfurt stock exchange.

The additional deferred and current income tax charges totaled 168 million euros ($221.4 million) over a period of approximately seven years. Of that, 73 million euros ($96.2 million) was reflected in the company's 2006 financial report and related to fiscal years 2004-2006.

The remaining 95 million euros ($125.2 million) in additional income tax expenses were related to the years before fiscal 2004.

Investigators in Germany, Italy and Switzerland are investing the alleged embezzlement of 200 million euros ($263.5 million) by some Siemens workers, but have not targeted the company itself.

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