"The positive volume and profit development in the last quarter underscores the important progress we have made in achieving our full-year targets. The numbers once again underline the competitive strength of the entire Siemens Healthineers team. The Imaging and Advanced Therapies businesses in particular have again demonstrated their leading global positions. The measures taken to ensure a successful market launch of our laboratory diagnostics platform Atellica Solution have shown an early impact in the second quarter”, said Bernd Montag, CEO of Siemens Healthineers AG.
As expected Siemens Healthineers AG's growth clearly accelerated in the second quarter of the current fiscal year 2019 that started in October. On a comparable basis, meaning excluding currency translation and portfolio effects, revenue rose 5.8 percent from the previous year and reached EUR 3.5 billion. Growth was particularly driven by the Imaging and Advanced Therapies segments, with EMEA and China recording significant growth from a regional perspective. On a reported basis, revenue was up about nine percent. Thanks to a significant increase in profitability in Imaging and Advanced Therapies, adjusted profit1 rose 12 percent year on year to EUR 627 million. This translates into an adjusted profit margin of 17.9 percent in the second quarter, compared to 17.4 percent a year earlier and despite negative currency effects of 70 basis points. Net income rose 24 percent to EUR 381 million despite a higher tax rate. The increase was supported by the absence of costs for the IPO in the previous year. Basic earnings per share increased accordingly2. Based on the business performance in the first six months of the year, the company confirms its outlook for fiscal year 2019.
Siemens Healthineers reporting segments in second quarter
Revenue of the Imaging segment rose to EUR 2.1 billion in the second quarter, corresponding to an increase of about seven percent from a year earlier on a comparable basis. This performance was supported by all reporting regions, with significant growth in EMEA and strong growth in the Americas region. Looking at individual businesses, particularly Molecular Imaging, Computed Tomography and X-Ray Products showed a strong development. The Imaging segment’s adjusted profit margin rose to 21.0 percent, mainly due to higher revenue and cost savings. Profitability thus remained within the midterm target range of 20 to 22 percent.
In the Diagnostics segment, second-quarter revenue was up about two percent on a comparable basis, supported by growth in the Asia, Australia and EMEA reporting regions, and reached just over EUR 1 billion. The segment’s adjusted profit margin reached 11.8 percent and, as in the first quarter, was negatively impacted by currency effects and ramp-up costs for Atellica Solution3. More than 410 Atellica Solution analyzers were shipped in the three months ending March 31, with the cumulated number for the first six months totaling over 780 shipments. In the meantime, Atellica Solution has also received approval in China.
The Advanced Therapies segment recorded revenue of EUR 391 million in the second quarter. On a comparable basis, this corresponds to an increase of around nine percent compared with the prior-year quarter. All reporting regions contributed to this performance, with the Asia, Australia and EMEA regions recording significant growth. At 19.6 percent, the adjusted profit margin was well above the prior-year figure, mainly due to higher revenue and cost savings.
Outlook for fiscal year 2019
The company confirms the outlook for fiscal year 2019 and continues to expect comparable revenue growth to be in the range of four to five percent compared to fiscal year 2018 and an adjusted profit margin in the range of 17.5 to 18.5 percent. Earnings per share are expected to be 20 to 30 percent above the level of fiscal year 2018. The outlook assumes that current foreign exchange rates persist for all of the remaining fiscal year 2019.
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Basic earnings per share in EUR
Free cash flow
…Adjusted profit margin
…Adjusted profit margin
…Adjusted profit margin
Income before income taxes, financing interest, centrally carried pension service and administration expenses (only excluded from segment’s profit) and amortization of intangible assets acquired in business combinations. Adjusted for severance charges, fiscal year 2018 additionally for IPO costs.
Basic earnings per share are calculated by dividing net income attributable to the shareholders of Siemens Healthineers AG by the weighted average number of outstanding shares of Siemens Healthineers AG.
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Reference Number: PR-20190502016SHS
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