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Healthineers first-quarter earnings lower on ramp-up costs

Published 02/03/2020, 01:33 AM
Updated 02/03/2020, 01:37 AM
Healthineers first-quarter earnings lower on ramp-up costs
SHLG
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FRANKFURT (Reuters) - Siemens Healthineers' (DE:SHLG) operating income slipped 11% in the first quarter of its fiscal year, despite higher revenues, as it sold less profitable imaging machines and incurred ramp-up costs for its new Atellica blood-testing machines.

The German maker of diagnostic equipment said adjusted earnings before interest and tax declined to 484 million euros ($536 million) during the October-December period.

That was below an average analyst estimate of 568 million euros, according to a consensus posted on the company's website.

"Profitability was negatively impacted by a temporary dip in Imaging and the guided weak margin performance in Diagnostics," the group said in a statement on Monday.

Atellica ramp-up costs were inflated by the shipment of more than 600 analyzers from July to September last year, it added.

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