Siemens Healthineers: shares fall after margin drop

(CercleFinance.com) - German medical technology company Siemens Healthineers posted a 12% fall in first-quarter net profit on Monday, missing expectations and sending its shares down.


By 11 am (CET), its shares were 5% lower at 40.3 euros, underperforming a 0.7% rise in the German MDAX midcap index.

The group - which makes in-vitro diagnostic and image-guided therapy systems - said revenue rose by 8.7% to 3.58 billion euros in the first quarter of fiscal year 2020 that ended 31 December 2019.

Comparable revenue growth was 5.5%, due to the strong performance of its imaging unit, which posted a 6.7% growth, it said.

However, the group's adjusted EBIT margin reached 13.5%, down from 16.4% last year, impacted by a temporary dip in the imaging division and a fall in diagnostics.

The Erlangen-based company confirmed its outlook for fiscal year 2020, saying that it still expects comparable revenue growth of 5% to 6% compared to fiscal year 2019.

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