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Siemens Healthineers Q2 profit falls, quits heart surgery robots business

Published May 10, 2023 06:05 Updated May 10, 2023 08:47
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© Reuters. FILE PHOTO: Siemens Healthineers logo in a manufacturing plant in Forchheim near Nuremberg, Germany, October 7, 2016. REUTERS/Michaela Rehle/File Photo
 
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By Alexander Hübner and Bartosz Dabrowski

(Reuters) - U.S.-German medical device maker Siemens Healthineers on Wednesday said it was discontinuing its heart surgery robot business as it posted a 30% drop in second-quarter operating profit on shrinking demand for COVID-19 tests.

The group said it would take a 329-million euro ($362 million) writedown on the robot-assisted endovascular cardiology business, which it acquired as part of the 1 billion-euro Corindus acquisition in 2019.

The "use of Corindus robots for cardiology operations did not fulfill our expectations," Chief Financial Officer Jochen Schmitz said on a press call. Schmitz added it will take several years before robots for neurological operations are ready for the market.

The group confirmed its full-year guidance of comparable revenue to be within a range of a 1% fall to a 1% increase from last year's 21.7 billion euros. However, it expects comparable revenue for its Diagnostics (Dx) unit to decline by 23%-26% compared to a previous forecast of a 19%-21% decrease as demand for COVID antigen tests falls.

"Results are overshadowed by disappointing Dx and lowered segment guidance, and a writedown in Advanced Therapies," Jefferies said in a note, referring to the discontinued robotics business.

J.P. Morgan analyst David Adlington added that diagnostics continued to be the key disappointment.

Siemens Healthineers' adjusted earnings before interest and taxes (EBIT) fell 30% to 681 million euros ($750 million) in the January-March period, missing the 702 million-euro forecast by analysts, according to a consensus provided by the company.

Revenues for the fiscal second quarter came in at 5.35 billion euros, down 2.5% on a comparable basis, which was above consensus for 5.28 billion.

Shares were down 6.7% as of 0735 GMT.

($1 = 0.9084 euros)

Siemens Healthineers Q2 profit falls, quits heart surgery robots business
 

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