German electronics giant Siemens AG's troubled mobile-phone business has taken its toll on the company with the group Thursday announcing a 52 percent drop in net income to 389 million euros ($470 million) in the fiscal third quarter.

However, the company said group sales rose 7 percent to 18.75 billion euros during the quarter ending June 30, with new orders increasing by nine percent to 19.93 billion euros.

"Further steps and hard work are necessary," said Siemens chief Klaus Kleinfeld while releasing the results.

Siemens has sold its mobile phones unit to Taiwanese technology group BenQ so as to allow the Munich-based company to focus on its more profitable industrial operations including power turbines and automation equipment.

BenQ shareholders this week approved the plan to take over Siemens's mobile-phone unit and Siemens hopes to finalise the deal in the coming months.