Bernd Montag, CEO of the medical technology group Siemens Healthineers. (picture alliance/dpa)
The German medical technology provider Siemens Healthineers is continuing to struggle with its diagnostics business.
High ramp-up costs for the new Atellica laboratory system hampered growth also in the third quarter and the Siemens management significantly cut the delivery objectives for the whole year.
As a consequence, the Siemens subsidiary will replace the diagnostics head Michael Reitermann on September 30. Chief executive Bernd Montag will take over the responsibility for the division himself.
In the third quarter, which ran through the end of June, Siemens Healthineers recorded nearly 3.6 billion euros (4 billion dollars) in revenue - an increase of 8 per cent - benefiting in part from positive currency effects.
Internally, it achieved growth of 5.8 per cent, driven by good business with its imaging systems, the company announced on Monday in the city of Erlangen.
The adjusted profit rose by 3 per cent to 543 million euros - slightly below analysts' expectations. The adjusted profit margin decreased by 0.8 percentage points to 15.2 per cent, taking a hit because of the problems with Atellica.
Net income increased by 20 per cent to 353 million euros thanks to lower financing interest and positive tax effects.
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