Profits surged more than 23% during the fiscal 3rd quarter for the healthcare business at Siemens (NYSE:SI) on double-digit sales growth, even as the German industrial conglomerate’s overall bottom line slid nearly -2%.
Siemens Healthcare reported profits of €549 million ($608.3 million) on sales of €3.25 billion ($3.60 billion) during the quarter, for a bottom-line addition of 23.4% on sales growth of 16.4% despite softer demand in China.
Siemens posted overall profits of €1.38 billion ($1.52 billion), or €1.65 ($1.83) per share, on sales of €18.84 billion ($20.88 billion), taking a -1.6% profit hit on sales growth of 7.6%.
Orders and revenue up in all businesses, led strongly by imaging and therapy systems businesses and benefiting from currency translation tailwinds
“We do not doubt that we are on the right track as we have seen since July,” CFO Ralf Thomas told analysts during a conference call.
Siemens has already announced plans to cut about 12,000 jobs, many of them in Germany where it employs about a third of its staff, at a cost of up to €1 billion. It booked severance charges of €274 million in the 3rd quarter, without which its industrial profit margin would have been 10.4%, and said it expected another €200 million to €400 million of charges this quarter.
Siemens shares closed up 2.4% at €96.15 apiece yesterday on the Börse. The stock was up 2.4% today on Wall Street, trading at $107.71 per share in mid-morning activity.
Material from Reuters was used in this report.
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