Siemens Healthcare Q3 revenues up, profits down

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Siemens Healthcare today reported a 17 percent downturn in overall profits for its fiscal 2009 third quarter, despite a robust 7 percent increase in revenues for the period, which ended on June 30.

According to the company, Siemens Healthcare benefitted from positive currency translation effects, and as a result "orders came in just below the prior-year quarter. In fact, the revenue for this division rose to EUR 2.87 billion ($4 billion, U.S.), from EUR 2.77 billion ($3.9 billion) in the 2008 third quarter. The sales were primarily based in Australia and Asia (except Japan)."

Higher healthcare revenues were led by the Imaging & IT and Diagnostics divisions, according to the company.

Overall, Siemens Healthcare recorded a net income of EUR 270 million ($380 million) for the 2009 third quarter, compared with EUR 320 million ($450 million) in the previous year-ago quarter. The company said its profits in this sector were negatively impacted by a EUR 128 million ($180 million) charge associated with particle therapy contracts in Workflow & Solutions.

The company noted that the Imaging & IT sector of the Healthcare division was its "top profit contributor." Its third quarter profits for this group climbed 39 percent to EUR 277 million ($389 million), which Siemens attributed to "higher revenue and cost-reduction measures."

Also, this sector's revenues rose 8 percent to EUR 1.69 billion ($2.38 billion) for this quarter, "driven by strong backlog conversion and service." Again, this division had the majority of its sales in Australia and Asia (except Japan). However, the company noted that its Imaging & IT orders declined 11 percent due to market difficulty, especially in Japan and the United States.

Siemens AG continues to expect total sectors profit for fiscal 2009 to exceed the prior-year level of EUR 6.6 billion ($9.3 billion).