Siemens revenue falls 7% in third quarter

2020 01 15 23 19 8499 Siemens Rsna 2019 400

Siemens Healthineers saw its revenue fall 7% in the company's third fiscal quarter due to the impact of the COVID-19 pandemic. The company saw a single-digit sales decline in its Imaging business and a double-digit drop in its Diagnostics division.

For the period (end-June 30), Siemens Healthineers posted revenues of 3.312 billion euros ($3.893 billion U.S.), down 7.2% compared with revenues of 3.569 billion ($4.196 billion) in the third quarter of 2019, and down 6.9% after adjusting for currency effects. The company's net income was 271 million euros ($318.6 million), down compared with 353 million euros ($414.9 million) in the corresponding quarter of 2019.

In its Imaging business, Siemens saw revenues of 2.113 billion euros ($2.483 billion) in the most recent quarter, down 3.4% compared with revenues of 2.186 billion ($2.57 billion) in the same period the year before, and down 3.3% after adjusted for currency changes. The Imaging division's adjusted earnings before interest and taxes (EBIT) were 447 million euros ($525.5 million), compared with 417 million euros ($490.2 million) in the third quarter of 2019.

In discussion of the Imaging group's results, Siemens said that growth in its CT business was not enough to offset declines in other modality areas. On a geographic basis, the Americas region saw a decline in revenues, while the Europe, Middle East, and Africa (EMEA); Asia; and Australia areas showed "largely stable development" compared with the year before. The higher earnings in a difficult sales environment were due to a "favorable business mix" and "stringent cost management."

In Diagnostics, the division posted revenues of 869 million euros ($1,021.639 billion) in the third quarter of fiscal 2020, down 16.7% compared with 1.043 billion euros ($1.226 billion) in the same period the year before, and down 15.9% after taking currency changes into account. In terms of adjusted EBIT, the division turned in a loss of 32 million euros ($37.6 million), compared with earnings of 76 million ($89.3 million) in the same period of 2019.

In discussing the segment's results, Siemens said the group's revenue decline was a result of lower testing volume for routine care that was offset only slightly by revenue from COVID-19-related tests. On a geographic basis, all three of the segment's reporting regions had revenue declines.

For the rest of the year, Siemens Healthineers forecast "broadly flat revenue growth," although CEO Bernd Montag was optimistic regarding the company's prospects for the fourth fiscal quarter.

"The development in the third quarter underscores the resilience of our business," Montage said in a prepared statement. "For the fourth quarter, we are anticipating a significant improvement of our business performance compared to the third quarter."

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