Siemens (NYSE:SI) grew profits and sales for its healthcare business at a double-digit clip during its fiscal 1st quarter, as the German industrial conglomerate surprised observers with unexpectedly strong results.
Siemens Healthcare posted profits of $586.1 million (€541 million), up 31.0%, on sales growth of 15.3% to $3.56 billion (€3.29 billion), compared with Q1 2015.
Siemens said orders and revenue for the healthcare business “mainly from the diagnostic imaging business with exceptionally high double-digit growth” and “strong order and revenue increases in China.”
Siemens Healthcare’s profit growth was attributed “mainly to a strong earnings performance from the diagnostic imaging business; profit also benefited from currency tailwinds,” the company said.
Overall profits for Siemens grew 42.2% to $1.69 billion (€1.56 billion), or $2.05 (€1.89) per share, on sales of $20.47 billion (€18.89 billion). That amounts to a top-line gain of 8.5% for the quarter, compared with fiscal Q1 2015.
“We delivered a strong quarter and are well underway in executing our Vision 2020. Therefore, we will raise our earnings outlook for 2016, even though the macroeconomic and geopolitical developments remain a concern for our markets. We continue to focus on addressing our structural challenges in the company and invest into further developing our markets and strengthening our innovation power,” president & CEO Joe Kaeser said in prepared remarks.
Siemens boosted its outlook for earnings per share to $6.50 – $6.93 (€6.00 to €6.40), up from $6.39 – $6.72 (€5.90 to €6.20).
Siemens shares were up 7% to €89.27 in mid-morning activity, marking their highest level since China-led turmoil took hold of global stock markets at the beginning of the year.
