Siemens Healthineers (SHLG) reported a significant 30% drop in quarterly operating profit, primarily due to lower contributions from rapid COVID-19 antigen tests. Adjusted earnings before interest and taxes (EBIT) for the January-March period fell to 681 million euros ($750 million), which was below analysts' expectations of 702 million.
The company also announced a substantial decline of 39% in revenue for the second quarter of its fiscal year but maintained its full-year outlook. The net profit for the quarter ended March 31 stood at just 108 million euros ($118.4 million), significantly down compared to EUR583 million during the same quarter last year.
Factors contributing to these disappointing financial results include not only lower contributions from rapid Covid-19 antigen tests but also transformation costs within their diagnostics business and expenses related to re-focusing on endovascular robotics solution technology.
One area that suffered greatly during this time was the diagnostics segment, experiencing a downturn by as much as 39%. Despite these setbacks, Siemens Healthcareineers remains optimistic about future growth prospects; they still anticipate revenues developing between a decrease of up to1% and an increase up to1%.
"The challenges we faced this quarter were largely unforeseen," said Bernd Montag, CEO of Siemens Healthineers. "However, we are confident that our strategic investments will help us regain momentum and achieve sustainable growth."
Although financial performance has been affected by current conditions, Siemens Healthineers continues working towards improving diagnostic technologies while keeping patient care at the forefront of their mission.
"We are dedicated to enhancing medical imaging solutions and laboratory diagnostics systems that ultimately support better patient outcomes," added Montag. "Despite short-term difficulties such as those experienced this past quarter, our long-term focus on innovation will ensure success moving forward."