Decline in COVID tests pulls down Q3 revenue at Siemens Healthineers

2022 02 04 20 07 5010 Siemens Rsna 2021 400

A sharp decline in revenues from rapid COVID-19 antigen tests contributed to a decline of almost 6% in revenues for the third fiscal quarter at Siemens Healthineers. The company reported "solid" growth from its imaging and radiation oncology businesses.

For the quarter (end-June 30), Siemens Healthineers posted third-quarter revenues of 5.186 billion euros ($5.25 billion), down 5.7% after currency adjustment compared with revenues of 5 billion euros ($5.07 billion) the year before. The company's net income for the quarter was 364 million euros ($369 million), down 8% compared with net income of 395 million euros ($400 million) in the same quarter the year before.

The company said that revenues fell due to "markedly lower" revenue from rapid COVID-19 antigen tests, and what the company called a "challenging environment" due mostly to pandemic lockdowns in China. Excluding COVID tests, the company's revenue would have grown 0.9% after currency adjustment.

The Diagnostics business reported sales of 1.409 billion euros ($1.43 billion), down 23.9% after currency adjustment compared with 1.72 billion euros ($1.74 billion) in the third quarter of fiscal 2021. The division's adjusted earnings before interest and taxes (EBIT) were 178 million euros ($181 million), compared with 360 million euros ($365 million) the previous year.

The company said the most recent quarter suffered from comparison to the third quarter of 2021, which Siemens called an "outstanding prior-year period." Sales of COVID-19 rapid antigen tests contributed revenues of 300 million euros ($304 million) most recently, compared with 600 million euros ($608 million) in the second quarter of 2021.

In its Imaging business, Siemens saw revenue grow 2.5% after currency adjustment, to 2.602 billion euros ($2.64 billion) in the most recent quarter compared with 2.376 billion euros ($2.41 billion) the corresponding quarter of 2021. The division's adjusted EBIT for the quarter was 478 million euros ($485 million), compared with 430 million euros ($436 million) in the same period of 2021.

On a modality basis, Siemens said that its MRI segment posted "very strong" growth, while revenues in molecular imaging and ultrasound fell due to disruptions in the supply chain related to pandemic lockdowns. Geographically, the Imaging business saw strong growth in the Americas region while the Europe, Middle East, and Africa (EMEA) region recorded slight growth and revenue fell slightly in the Asia/Australia region due to lockdowns in China.

The company's Varian radiation oncology segment saw revenues of 800 million euros ($811 million), up 8.2% after currency adjustment compared with sales of 591 million euros ($599 million) in the second quarter of 2021. The division's adjusted EBIT was 107 million euros ($109 million), compared with 98 million euros ($99 million) the corresponding quarter the year before.

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