Siemens Healthineers' Q1 revenue, net income rise, but profit at diagnostics unit hit by Atellica launch

Headline results for the first quarter:

Revenue

3.3 billion euros ($3.8 billion; in line with forecasts) 

+3%

Profit

345 million euros ($394 million)

+11%

Note: All changes are versus the prior-year period unless otherwise stated 

What the company said:

"Business performance in the first quarter is a story of light and shade," remarked CEO Bernd Montag, adding that the company's "growth trend remains intact." However, the executive said "what we are not pleased with…is the profit development of our diagnostics business."

Montag continued "we have therefore directly initiated measures to sharpen our focus even more on the business success of Atellica Solution," which has been hampered by lengthy installation times. Specifically, the company has boosted its installation teams for the new blood and urine testing systems, and added experienced staff, while the project will now report directly to Montag to enable faster decision-making. "We have all hands on deck because this must be the priority for the organisation...until the end of the fiscal year," he said.

The company said more than 35 percent of orders for Atellica Solution came from new customers, adding that it hopes to deliver up to 2500 machines this year, with shipments expected to increase in the coming quarters as approval in China is likely in the second half.

Other results:

  • Imaging segment sales: 2 billion euros ($2.3 billion), up 4 percent, with strong growth in the Americas region
  • Diagnostics segment sales: 964 million euros ($1.1 billion), up 4 percent, driven by sales in the Americas region and China, with more than 370 Atellica Solution analysers shipped in the quarter
  • Diagnostics segment profit: 76 million euros ($87 million), down 24 percent, due to currency effects and higher costs for the Atellica Solution ramp-up
  • Advanced therapies segment sales: 355 million euros ($405 million), down 3 percent, from a "very strong prior-year quarter"

Looking ahead:

Siemens confirmed its outlook for fiscal year 2019, with comparable revenue growth to be in the range of 4 percent to 5 percent year-on-year, while earnings per share are still expected to be 20 percent to 30 percent above the level of fiscal 2018.

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