Siemens Healthineers with strong finish in fourth quarter, full year targets for fiscal 2018 achieved
Erlangen, Germany | Nov 05, 2018
Q4 fiscal year 2018
- Comparable revenue up by four percent driven by strong Imaging segment with six percent growth
- Diagnostics segment with improving growth dynamics of three percent and continued double-digit instrument sales growth
- Adjusted profit margin at 18.2 percent despite significant currency headwinds
- Atellica Solution1 ramp-up on track with more than 990 analyzers shipped by end of September
Fiscal year 2018
- Full year targets achieved
- Comparable revenue up by four percent
- Adjusted profit margin at 17.2 percent despite negative currency effects
- Siemens Healthineers proposes a dividend of EUR 0.70 per share
Siemens Healthineers AG has achieved its targets for the fiscal year 2018 just ended and presented a strong result for the fourth quarter. The adjusted profit margin in the fourth quarter was 18.2 percent, despite significant negative currency effects of 210 base points. Adjusted profit amounted to EUR 674 million and adjusted net income was EUR 430 million. Earnings per share are at EUR 0.37. Revenue increased to EUR 3.7 billion in the fourth quarter, a solid increase of four percent on a comparable basis over the same quarter of the previous year, driven in particular by the Imaging segment’s strong comparable growth of six percent. Comparable revenue was up in all regions, especially in the Americas. The Diagnostics segment posted growth of three percent on a comparable basis. As expected, shipments of the Atellica Solution laboratory diagnostics system surged in the fourth quarter and now total more than 990 systems up to the end of September.
In fiscal 2018 Siemens Healthineers achieved revenue growth of four percent on a comparable basis. Despite negative currency effects of 120 base points, the adjusted profit margin was 17.2 percent. Growth in revenue and profit margin were thus within the target corridors. The company’s annual revenue amounted to EUR 13.4 billion, adjusted profit to EUR 2.3 billion.
“Based on a convincing team performance, we have delivered what we promised and achieved our goals for revenue growth and profit margin. We made the year of the successful IPO also a successful fiscal year for Siemens Healthineers and underpinned our strong competitive position. Thanks to the strength of our portfolio in all segments and the significantly accelerated delivery of the Atellica Solution laboratory diagnostics system, we can look forward with confidence to the 2019 fiscal year that has just begun,” said Bernd Montag, CEO Siemens Healthineers.
Segments in the fourth quarter
Revenue in the Imaging segment grew to EUR 2.3 billion – a clear six percent increase on a comparable basis over the same quarter of the previous year. The growth in revenue was driven by the equipment and service business, with notable growth in Ultrasound, Computed Tomography and X-Ray Products. Comparable revenue was up in all three regions, particularly strongly in the U.S. Adjusted profit rose from EUR 476 million in the equivalent period last year to EUR 486 million. Despite negative currency effects, the segment achieved an adjusted profit margin of 21.2 percent.
In the Diagnostics segment deliveries of the Atellica Solution laboratory diagnostics system surged in the fourth quarter as expected. A total of more than 990 systems had been shipped by the end of September, almost eclipsing the shipment target of 800 to 1000 systems for the fiscal year. Driven by increased sales of Atellica Solution, the segment generated revenues of EUR 1.1 billion in the fourth quarter – an increase of three percent on a comparable basis, primarily in the Asia-Pacific and Americas regions. The adjusted profit margin was 12.9 percent. Adjusted profit amounted to EUR 136 million – after EUR 155 million in the same period of the previous year, which benefited from an one-time effect. The segment won further major orders for Atellica Solution in the fourth quarter: Primary Health Care, one of the biggest companies in the Australian health sector with a total of 108 laboratories throughout the country, has ordered 74 analyzers. Laborizon, a laboratory association with 81 locations in the northwest of France, is buying 40 analyzers.
Revenue in the Advanced Therapies segment grew to EUR 407 million, corresponding to a solid four percent growth rate on a comparable basis compared with the same period last year. Comparable growth was driven by the new equipment and service business as well as by all regions, especially Asia-Pacific and Americas. Due to significant negative currency effects, adjusted profit were EUR 91 million after EUR 95 million in the previous year’s quarter, while the adjusted profit margin amounted to 22.3 percent.
Outlook on fiscal 2019
For fiscal 2019, which began on October 1, 2018, the company expects 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 fiscal year 2019.
For further information, please see http://siemens-healthineers.com/FY2018-results.
1 Product availability varies by country.
Siemens Healthineers enables healthcare providers worldwide to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving patient experience and digitalizing healthcare. A leader in medical technology, Siemens Healthineers is constantly innovating its portfolio of products and services in its core areas of diagnostic and therapeutic imaging and in laboratory diagnostics and molecular medicine. Siemens Healthineers is also actively developing its digital health services and enterprise services.
In fiscal 2018, which ended on September 30, 2018, Siemens Healthineers generated revenue of €13.4 billion and adjusted profit of €2.3 billion and has about 50,000 employees worldwide.
Further information is available at www.siemens-healthineers.com.
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Reference Number: PR-20181105035SHS