For the first time in its history, Siemens Healthcare topped 3 billion euros ($3.9 billion U.S.) in both revenues and orders in one quarter, but the Erlangen, Germany-based company's fourth-quarter performance (end-September 30) was not without its downside.
Revenues increased 9% in the fourth quarter to 3.11 billion euros ($4.04 billion), compared with 2.84 billion euros ($3.69 billion) in the previous year's fourth quarter. Orders advanced 13% to 3.38 billion euros ($4.39 billion), compared with 2.99 billion euros ($3.89 billion) in the year-ago quarter.
Profit for the fourth quarter decreased to 226 million euros ($293.8 million), compared with 380 million euros ($494 million) in the same quarter a year earlier. Healthcare's profit margin includes 272 million euros ($356.3 million) in what Siemens describes only as "negative impacts."
Siemens Healthcare's Imaging & IT division again was the sector's profit leader, with a profit of 232 million euros ($301.6 million) in the fourth quarter. The total was down from 347 million euros ($451.1 million) in the previous year's fourth quarter. The decline was due, in part, to 90 million euros ($117 million) in severance charges from layoffs in 2008.
Like the rest of Siemens Healthcare, the Imaging & IT division faced challenges in the U.S. with the adverse impact of the Deficit Reduction Act (DRA) of 2005 and uncertainty with reimbursement.
The company's Diagnostic division contributed 50 million euros ($65 million) to fourth-quarter profit, compared with a loss of 4 million euros ($5.2 million) in the previous fourth quarter. Fueled by Siemens' acquisition of Dade Behring, revenues increased to 831 million euros ($1.08 billion), compared with 491 million euros ($638 million) in the year-ago quarter.
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