Siemens Healthineers with strong second-quarter performance despite COVID-19 pandemic
Erlangen, Germany | May 05, 2020
Siemens Healthineers AG today announced its results for the second quarter of fiscal year 2020 that ended March 31, 2020.
Q2 Fiscal Year 2020
- Comparable revenue growth of 3.3% – negative COVID-19 impact of about 4 percentage points
- Strong revenue performance in Imaging with 5.8% comparable growth and Advanced Therapies with 5.7% increase
- Equipment book-to-bill with 0.94 only slightly below 1
- Revenue decline by comp. 2.2% in Diagnostics in light of a declining number of patients due to the crisis burdens profitability
- Adjusted EBIT margin at 17.9%, +10 bps year on year and clear improvement from Q1
- Adjusted basic earnings per share rise 11% to €0.45
- Q2 free cash flow resilient but below Q1 due to crisis-related inventory build-up
- Outlook for FY 2020 no longer valid, Q3 expected to be trough
Bernd Montag, CEO of Siemens Healthineers AG:
"We stand shoulder to shoulder with our customers as a strong partner during the global COVID-19 pandemic. With our globally leading products and solutions, we are delivering support wherever we can. Overall, our business has performed well in the second quarter despite the pandemic and growing economic turbulence around the globe. We have increased our profitability from the first quarter, and thereby kept the promise we made. 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."
As of beginning of fiscal year 2020, Siemens Healthineers applies the accounting standard IFRS 16, Leases. Comparative figures for the preceding fiscal year were not adjusted. Instead, the overall insignificant transition effects were recognized in equity as of October 1, 2019.
Siemens Healthineers AG (listed in Frankfurt, Germany: SHL) is shaping the future of Healthcare. As a leading medical technology company headquartered in Erlangen, Germany, Siemens Healthineers enables healthcare providers worldwide through its regional companies to increase value by empowering them on their journey towards expanding precision medicine, transforming care delivery, improving the patient experience, and digitalizing healthcare. Siemens Healthineers is continuously developing its product and service portfolio, with AI-supported applications and digital offerings that play an increasingly important role in the next generation of medical technology. These new applications will enhance the company’s foundation in in-vitro diagnostic, image-guided therapy, and in-vivo diagnostics. Siemens Healthineers also provides a range of services and solutions to enhance healthcare providers ability to provide high-quality, efficient care to patients. In fiscal 2019, which ended on September 30, 2019, Siemens Healthineers, which has approximately 52,000 employees worldwide, generated revenue of €14.5 billion and adjusted profit of €2.5 billion. Further information is available at www.siemens-healthineers.com.
This document contains statements related to our future business and financial performance and future events or developments involving Siemens Healthineers that may constitute forward-looking statements. These statements may be identified by words such as “expect”, “forecast”, “anticipate”, “intend”, “plan”, “believe”, “seek”, “estimate”, “will”, “target” or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of Siemens Healthineers’ management, of which many are beyond Siemens Healthineers’ control. As they relate to future events or developments, these statements are subject to a various risks, uncertainties and factors, including, but not limited to those described in the respective disclosures. Should one or more of these risks, uncertainties or factors materialize, or should underlying expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens Healthineers may (negatively or positively) vary materially from those described explicitly or implicitly in the forward-looking statement. All forward-looking statements only speak as of the date when they were made and Siemens Healthineers neither intends, nor assumes any obligation, unless required by law, to update or revise these forward-looking statements in light of developments which differ from those anticipated.
This document includes – in the applicable financial reporting framework not clearly defined – supplemental financial measures (financial key performance indicators) that are or may be alternative performance measures (non-GAAP-measures). These supplemental financial measures may have limitations as analytical tools and should not be viewed in isolation or as alternatives to measures of Siemens Healthineers’ net assets and financial positions or results of operations as presented in accordance with the applicable financial reporting framework in its Consolidated Financial Statements. Other companies that report or describe similarly titled alternative performance measures may calculate them differently, which may therefore not be comparable.
Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures to which they refer.
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Please find further explanations to our financial key performance indicators in chapter „A.2 Financial performance system“ and in the notes to the consolidated financial statements note 29 „Segment information“ in the Annual Report 2019 of Siemens Healthineers. Additional information on reconciliations is also included in the Analyst Presentation. These documents are available under the following internet link https://www.corporate.siemens-healthineers.com/investor-relations/presentations-financial-publications.