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Siemens Healthineers Fiscal Q2 Diagnostics Revenues Fall 1 Percent; Firm Suspends Guidance

NEW YORK – Siemens Healthineers said Tuesday that its fiscal year 2020 second quarter revenues were up 5 percent year over year, despite a 4 percent negative impact on its revenues stemming from COVID-19.

On a comparable basis, its year-over-year revenues rose 3 percent, the firm said.

For the three months ended March 31, Siemens Healthineers reported total Q2 revenues of €3.69 billion ($4 billion) compared to €3.51 billion in the prior-year quarter.

The Erlangen, Germany-based company reported Diagnostics revenues of €1.01 billion, down 1 percent from €1.02 billion in Q2 2019, driven by a revenue drop associated with lower numbers of patients seeking diagnostic testing in China. Diagnostics revenues also fell moderately in Europe, the Middle East, and Africa while the Americas showed "solid development" and cushioned the overall declining trend, the firm said. Effects from the COVID-19 pandemic negatively impacted Diagnostics revenue growth in the low- to mid-single-digit percent range, Siemens Healthineers said.

"Overall, our business has performed well in the second quarter despite the pandemic and growing economic turbulence around the globe," Bernd Montag, the firm's CEO, said in a statement. "Currently, there are no reliable forecasts for the duration or intensity of the COVID-19 pandemic. Consequently, from today’s point of view, it is also not possible to make assumptions related to business development with certainty. Nevertheless, the fundamental growth drivers of our business remain intact."

The firm noted that it is helping customers and medical personnel worldwide to combat the COVID-19 pandemic through its diagnostic imaging and laboratory diagnostics businesses. As part of the company's effort to increase the availability of testing capacities to fight the spread of the pandemic, Siemens Healthineers is delivering a molecular test in Europe that detects the SARS-CoV-2 coronavirus.

Further, by the end of May, the company anticipates introducing an antibody test for its high-throughput analyzers that will indicate whether an individual has an  immune reaction against the virus. With a demonstrated sensitivity and specificity of over 99 percent, the test is expected to exceed stringent US Food and Drug Administration quality guidelines, Siemens Healthineers said.

In other areas of its business, the company's Imaging segment reported revenues of €2.31 billion for Q2, up 6 percent year over year from €2.18 billion, and Advanced Therapies reported €421 million in revenues, up 8 percent year over year from €391 million.

Siemens Healthineers reported a Q2 net income of €414 million, or €.41 per share, compared to €381 million, or €.38 per share, in Q2 2019. Its adjusted basic earnings per share was €.45.

Its Q2 R&D expenses were €339 million, up 5 percent year over year from €322 million, and its SG&A expenses were €565 million, up 5 percent year over year from €536 million.

At the end of Q2, Siemens Healthineers had €845 million in cash and cash equivalents.

The company said that due to the COVID-19 pandemic, the targets it had previously communicated for comparable revenue growth and adjusted basic earnings per share are no longer valid and are not likely to be achieved. For the time being, the firm said, it is not communicating expectations for fiscal year 2020.

Siemens Healthineers had previously announced that for FY 2020 it expected comparable revenue growth to be in the range of 5 percent to 6 percent and adjusted earnings per share to be in the range of 6 percent to 12 percent above the year-ago figure of €1.70.