Siemens Healthineers (SHLG.DE) reported stronger-than-expected first-quarter revenue on Thursday, with a 5.9% year-on-year increase, despite challenges posed by delayed customer orders in China. The company’s Q1 group revenue reached 5.48 billion euros ($5.69 billion), slightly surpassing the 5.37 billion euros forecast by analysts.
The revenue boost was driven by a 16% surge in U.S. revenues, counteracting a 6% decline in sales from China, which the company attributed to “continued delays in customer orders.” Like many of its peers in the healthcare technology sector, Siemens Healthineers has been impacted by China’s ongoing anti-corruption campaign, leading to reduced hospital equipment orders in the region.
Siemens Healthineers’ Chief Financial Officer, Jochen Schmitz, stated that the company expects continued challenges in China, forecasting a decline in sales in the “medium to high percentage range” during the first half of the year. He also noted a “flat trend” in China’s performance over the following quarters.
Despite the challenges, Siemens Healthineers remains cautiously optimistic, with CEO Bernd Montag emphasizing that while global trade disruptions, such as U.S. tariffs on imports from Mexico and Canada, are a concern, the risk to the healthcare and medical technology sectors remains relatively low. He added that U.S. tariffs on Chinese imports would have a “minor” impact on the company’s business.
The company also expects a stronger U.S. dollar to play a role in its financial outlook. Siemens Healthineers confirmed its full-year guidance, with revenue growth anticipated to fall within the lower end of the projected range of 5% to 6% for the second quarter.