Siemens (NYSE:SI) saw profits rise for its healthcare division even as Siemens Healthcare’s sales declined by 2.5% during the German conglomerate’s fiscal 2nd quarter.
Siemens Healthcare logged profits of €445 million (about $YY) on sales of €4.28 billion during the quarter. The imaging giant’s parent posted Q2 profits of €1.03 billion, or €1.20 per share, on sales of €23.52 billion, for bottom-line growth of 9.8% on a 6.7% sales slide.
"Results for the second quarter show a mixed picture. While we were able to clearly increase orders, we still have challenges regarding revenue and profit. Even more we’re focusing on the factors that lie in our own hands: We’re rigorously executing our company-wide Siemens 2014 program," president & CEO Peter Löscher said in prepared remarks.
Siemens said the profit growth in healthcare was due to "improvements in cost position resulting from the sector’s ongoing agenda 2013 initiative as well as lower charges associated with this initiative," according to a press release.
"These charges totaled €13 million in the current period compared to €38 million in the prior-year period," Siemens said. "Profit development improved despite lower revenue and an excise tax on medical devices sold in the U.S., which was introduced on January 1, 2013 and affected most businesses in the sector."
The revenue decline was pegged to lower sales in the U.S. and Europe, somewhat offset by growth in Asia and Australia and "double-digit increases" in China.
