Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Siemens Healthineers raises outlook on booming COVID-19 test demand

05/03/2021 | 06:19am EDT
FILE PHOTO: Siemens Healthineers logo is seen on an item of clothing in manufacturing plant in Forchheim

By Alexander Hübner and Caroline Copley

BERLIN (Reuters) -German health technology company Siemens Healthineers has raised its full-year sales and profit forecast for the second time this year, as the COVID-19 pandemic continues to drive demand for its rapid antigen tests.

Makers of diagnostic tests, including rivals Roche and Becton Dickinson, are benefiting from strong demand for testing as countries try to contain infection waves and rely on testing to start opening up parts of society.

Healthineers now expects sales to increase 14% to 17% in the year to September, while adjusted basic earnings per share are forecast at 1.90 euros to 2.05 euros versus an earlier forecast of 1.63 euros to 1.82 euros.

The upbeat outlook reflects booming demand for the company's COVID-19 rapid tests, which are mainly sold in Germany and generated sales of 190 million euros ($228 million) in the company's second quarter, which runs from January to March.

Healthineers said it now expects rapid antigen test revenue of around 750 million euros for its full fiscal year, up from 300 million to 350 million forecast previously.

But the company expects profit accretion to decline in the later part of its second half as tests become cheaper and demand falls once more people are vaccinated.

Comparable sales in the January-March period, Siemens Healthineers' fiscal second quarter, rose almost 13% to 3.965 billion euros. Net income increased by 8% to 447 million euros.

Makers of medical-imaging gear are seeing pent-up demand from hospitals, which delayed ordering in the earlier stages of the pandemic. Dutch rival Philips posted a hefty jump in quarterly profit last week.

But Chief Financial Officer Jochen Schmitz told reporters a recovery in the Varian business, which Healthineers bought for $16.4 billion to expand its cancer care business, would be delayed as hospitals focus on treating COVID-19 patients.

Shares in Healthineers rose 1.1% to 48 euros by 0912 GMT.

($1 = 0.8319 euros)

(Reporting by Caroline CopleyEditing by Riham Alkousaa, Vinay Dwivedi and Jane Merriman)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BECTON, DICKINSON AND COMPANY 0.17% 255.75 Delayed Quote.2.21%
KONINKLIJKE PHILIPS N.V. 0.73% 38.89 Real-time Quote.-11.17%
ROCHE HOLDING AG 0.79% 350.35 Delayed Quote.13.38%
SIEMENS AG -1.20% 131.58 Delayed Quote.11.96%
Latest news "Economy & Forex"
05:14pBlackstone and Hudson Pacific plan $1 billion film studios in UK
RE
05:10pCovid-19 vaccine booster shots for 32 million to begin next month in uk - the telegraph
RE
02:55pZoom reaches $85 million settlement over user privacy, 'Zoombombing'
RE
02:43pU.S., Britain believe Iran attacked Israeli-managed tanker off Oman
RE
02:03pU.S. CDC Says Administered 346,456,669 Doses Of COVID-19 Vaccine As Of Aug 1 Versus 345,640,466 Doses Administered As Of July 31
RE
02:03pU.s. cdc says 164,757,423 individuals have been fully vaccinated against covid-19 as of aug 1 versus 164,446,964 individuals as of july 31
RE
02:02pU.s. cdc says 191,498,983 individuals have received at least one dose of covid-19 vaccine as of aug 1 versus 190,982,149 individuals as of july 31
RE
02:01pU.s. cdc says administered 346,456,669 doses of covid-19 vaccine as of aug 1 versus 345,640,466 doses administered as of july 31
RE
12:23pBOX OFFICE : 'Jungle Cruise' Docks With $34 Million in Theaters, $30 Million on Disney Plus
RE
12:06pAllianz cooperating as DOJ probes Structured Alpha Funds
RE
Latest news "Economy & Forex"