- Weak Chinese business slows Siemens Healthineers
Siemens Healthineers, a medical technology giant, faced headwinds in the third quarter due to cautious demand in China, particularly impacting its imaging business, which contributes significantly to its revenue and profits. Nevertheless, Siemens Healthineers managed to increase both its revenue and profits, also thanks to notable progress in restructuring its laboratory diagnostics.
In the third quarter (ending June), revenue grew by 4.3% to €5.4 billion, as announced by the company in Erlangen. Siemens Healthineers saw significant increases in both the American and European regions. However, revenue in China declined by a low double-digit percentage on a comparable basis, excluding currency and portfolio effects.
After taxes, the competitor to Dutch company Philips earned €472 million, a 5% increase. However, analysts had expected more. The company's stock, listed in the DAX index, came under pressure on Wednesday morning, losing around 7% at the start of trading.
Siemens Healthineers reaffirmed its forecast for the current year, expecting to achieve comparable revenue growth of 4.5% to 6.5%. However, due to weak business in China, the management lowered its revenue forecast for imaging.
Siemens Healthineers, based in Germany, reported a 5% increase in profits after taxes during the third quarter, despite facing cautious demand in China. Despite a decline in revenue in China, Siemens Healthineers continues to expand its business in the American and European regions.
