Siemens (NYSE:SI) Healthineers this week posted first quarter fiscal year 2019 earnings that showed both sales and bottom-line growth, but saw its diagnostics and advanced therapies divisions profits shrink compared with the same period during the previous year.
The Erlangen, Germany-based company posted profits of approximately $394.1 million (EU €345 million), or 39¢ per share (EU €0.34 ), on sales of approximately $3.8 billion (EU €3.3 billion) for the three months ended December 31, for bottom-line growth of 11.3% while sales grew 3.2% compared with the same period during the previous year.
The company reported growth of 7% on the bottom-line for its imaging division, while its diagnostics division saw profits slide 24% and its advanced therapies business saw profits shrink 17%, according to the release.
“Business performance in the first quarter is a story of light and shade. Siemens Healthineers‘ growth trend remains intact and customers’ response to our new Atellica Solution laboratory diagnostics platform continues to be positive. What we are not pleased with, however, is the profit development of our Diagnostics business. We have therefore directly initiated measures to sharpen our focus even more on the business success of Atellica Solution. We confirm our outlook for fiscal year 2019,” CEO Bernd Montag said in a press release.
Siemens Healthineers affirmed its guidance for the remaining 2019 fiscal year, expecting to see revenue growth of between 4% and 5%.
The company said it expects to post a profit margin of between 17.5% and 18.5%, with earnings per share coming in at between 20% and 30% above their postings for its fiscal year 2018.