Siemens Healthineers, a medical equipment manufacturer with locations in the U.S. and Germany, needs to be more concerned about the unexpected issues that lowered its quarterly operating profit. Most of this decline was attributable to Varian, a cancer therapy business, delivering supplies late. Siemens Healthineers remains confident in its 2019 forecast.
The company’s third-quarter adjusted profits before interest and taxes (EBIT) decreased 3% to 740 million euros ($812.59 million). The corporation made 773 million euros less than analysts predicted. Shares fell by 5.3% when the Frankfurt trade began in the morning.
Quarterly revenues increased 3.6% to 5.1 billion euros. Imaging and Advanced Therapies growth drove this boost, according to analysts. Net income increased by over a quarter compared to last year’s period. It was primarily due to the low tax rate. The comparable revenue increase for April through June was 10.1% after removing COVID-19 fast antigen test revenue.
The company’s CEO, Bernd Montag, was pleased with the latest quarter’s performance. He told the media that the company is on track to fulfill its full-year comparable revenue change goal of -1% to 1%. After expressing satisfaction with the company’s performance in the previous quarter, Bernd Montag mentioned these words.
Even while the prognosis is excellent, Siemens Healthineers had to cut its projection for Varian’s profit margin to account for the brief outbound logistical issues that the American cancer treatment device and software provider is presently suffering. This was done to account for Siemens Healthineers’ current issues. Varian makes cancer treatment equipment and software. 14–15% was the profit margin. Jochen Schmitz, Varian’s CFO, remains optimistic. He believes shipping issues will be resolved by the end of the fourth quarter due to Varian’s large order volume.
Varian’s profit fell almost a third to 102 million euros in the quarter. The margin fell six percentage points to 12.1% from the previous year. One hundred two million euros was the total.
Even though the findings were favorable, Jefferies stated that Varian’s data and the low amount of orders made it impossible to notice the positive results. This was primarily true even though the Imaging and Diagnostics departments did well. Comparatively, the Diagnostics segment’s income dropped 20.1% due to a decrease in test orders. The revenue increased by 2.0% when the test results were removed. However, comparable sales for the Imaging segment rose 15.2%.0.9084 euros per dollar