Rewritten Article:
Trade Disputes Hits Siemens Healthineers, Lowers Earnings Forecast
Siemens Healthineers reduces anticipated earnings projection by medical technology professional
Siemens Healthineers, a leading player in the medical technology industry, has lowered its earnings expectations for the first half of the fiscal year 2024/25, thanks to a bigger-than-expected impact from trade disputes.
The usually prosperous Erlangen-based medical technology giant is facing an unexpected disadvantage due to geopolitical tensions. Despite an impressive second quarter, Siemens Healthineers is taking a step back, adjusting its earnings projections to account for increased uncertainty.
The optimistic range for earnings per share (EPS) in the current fiscal year has been narrowed from 2.35 euros to a new span of 2.20 to 2.50 euros. Analysts, who were already anticipating an average of 2.46 euros, might be in for a revision. However, on a comparable basis, revenue is projected to grow by a healthy margin of 5 to 6 percent.
Trade squabbles and other trade barriers are likely to affect the growth dynamics of individual segments negatively in the second half of the year, according to Wednesday's announcement.
CEO Bernd Montag acknowledged the altered environment, expressing that while the fundamental growth drivers remain intact, the rise in geopolitical volatility will impact the business. The USA and China, two of the company's largest sales markets, are under the spotlight due to President Donald Trump's imposition of high import tariffs on numerous countries.
Siemens Healthineers' Q2 revenue saw a substantial boost of almost 7 percent, reaching 5.9 billion euros on a comparable basis. This growth was fueled by strong growth in the cancer medicine segment Varian and the imaging segment (MRT, CT, X-ray). The adjusted earnings before interest and taxes (EBIT) experienced a nearly 16 percent increase, reaching 982 million euros. The diagnostics segment Diagnostics demonstrated impressive improvements despite minimal growth, thanks to restructuring efforts. Analysts had anticipated a slightly more modest average performance. Net income soared by a quarter to 537 million euros.
Sources: ntv.de, jwu/rts
- Dax Companies
- Earnings Forecasts
- Trade Disputes
- Medical Technology
Enrichment Data:
The ongoing trade disputes are producing tangible effects on Siemens Healthineers' earnings forecast, with the company revising its outlook to accommodate the increased uncertainty. The lowered EPS range of €2.20 to €2.50 for the fiscal year 2024/25 reflects this cautious approach as trade tensions mount[1][2]. Furthermore, though the company anticipates a revenue growth of 5 to 6 percent on a comparable basis, trade barriers are expected to have a slight negative impact on certain segments in the second half of the year[2][3]. Geopolitical volatility, as highlighted by CEO Bernd Montag, is a significant factor contributing to Siemens Healthineers' revised outlook[2]. With substantial exposure to major markets like the United States and China, where tariffs are a pressing concern, Siemens Healthineers faces additional uncertainty in its earnings projection[2].
- The ongoing trade disputes have caused Siemens Healthineers, a major player in the medical technology industry, to lower its employment policy for the first half of the fiscal year 2024/25, citing increased uncertainty due to geopolitical tensions.
- Siemens Healthineers, despite posting impressive earnings in its cancer medicine and imaging segments during Q2, has adjusted its earnings projections due to trade disputes. The CEO, Bernd Montag, acknowledges the altered environment, stating that the rise in geopolitical volatility will impact the company's earnings.
- Despite facing potential negative impact from trade barriers in the second half of the year, Siemens Healthineers projects a healthy growth in revenue by 5 to 6 percent on a comparable basis. However, this growth might be affected in certain employment policy segments due to ongoing trade disputes.
