Siemens posts strong revenue, earnings growth in Q1

2020 01 15 23 19 8499 Siemens Rsna 2019 400

Benefiting from ongoing demand for products related to the COVID-19 pandemic and recovery in its core businesses, Siemens Healthineers exceeded market expectations in its fiscal 2021 first quarter.

For the period (end-December 30), Siemens Healthineers had overall revenue of 3.868 billion euros ($4.685 billion U.S), up 13.3% on a comparable basis from the 3.587 billion euros ($4.344 billion) in the 2020 fiscal first quarter. Profitability also increased, climbing from adjusted earnings before interest and taxes (EBIT) of 487 million euros ($589 million) a year ago to reach 738 million euros ($894 million).

Helped by strong growth in all of its business lines, Siemens' imaging segment produced revenues of 2.319 billion euros ($2.808 billion), up 9.3% on a comparable basis from the 2.221 billion euros ($2.689 billion) generated during the 2020 fiscal first quarter. It achieved adjusted EBIT of 542 million euros ($657 million), up from 387 million euros ($469 million) in the same period last year. The segment's strong growth was headlined by double-digit gains in its computed tomography (CT) business, which was buoyed by significant pandemic-related demand, according to the company.

Pandemic-related products were also a growth driver in the vendor's diagnostics segment, which contributed 1.183 billion euros ($1.432 billion) -- up 23.5% on a comparable basis compared with the 1.013 billion euros ($1.227 billion) garnered in the first quarter in 2020. In quarterly highlights, the firm's rapid antigen test added 130 million euros ($157 million) in revenues for its point-of-care business, while Siemens' core business also returned to growth. The diagnostics segment had adjusted EBIT of 137 million euros ($166 million), up from 32 million euros ($39 million) last year.

Meanwhile, the vendor's advanced therapies segment also returned to growth, producing 412 million euros ($499 million) in first-quarter revenue, up 6.3% on a comparable basis from the 404 million euros ($489 million) produced in the fiscal 2020 first quarter. It had adjusted EBIT of 78 million euros ($94 million), down slightly from the 79 million euros ($96 million) earned last year.

Based on ongoing demand related to the pandemic and higher confidence in the normalization of its underlying business, Siemens is raising its outlook for the 2021 fiscal year. It said it now expects to report 8%-12% comparable revenue growth, up from the previous expectation of 5%-8% growth.

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