German electronic engineering giant, Siemens AG, has issued a profit warning for the 1997/98 fiscal year, with a price war in the memory chip industry the key to its woes.

However, the crisis in its computer-chip unit also acted as a catalyst and Siemens announced a broad restructuring plan which may involve floating some units on the bourse.

"The original fiscal 1998 target of achieving stronger growth in net income than in sales will not be met," Siemens said in a statement.