Siemens Healthineers posts revenue beat, but lowers floor of profit outlook
Siemens Healthineers logo is seen on an item of clothing in manufacturing plant in Forchheim near Nuremberg, Germany, October 7, 2016. REUTERS/Michaela Rehle/File Photo Purchase Licensing Rights , opens new tab
May 7 (Reuters) - German medical technology group Siemens Healthineers (SHLG.DE)
, opens new tab posted second quarter revenue slightly above market expectations on Wednesday, but brought down the lower end of its annual earnings forecast due to trade barriers and increased tariffs.
"While the fundamental growth drivers remain intact, we expect that the significantly increased volatility of the geopolitical environment will weigh on our business this year," CEO Bernd Montag said in a company-issued statement.
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Siemens Healthineers confirmed its full year revenue outlook for comparable growth of 5% to 6%, but expanded the forecast range for adjusted basic earnings per share to between 2.20 euros and 2.50 euros, from 2.35 euros to 2.50 euros previously.
Its revenue was 5.91 billion euros ($6.70 billion) in the second quarter, compared to the 5.80 billion euros expected by analysts in a consensus compiled by Vara Research.
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China, a key source of raw materials for the pharmaceutical and medical device sectors, has imposed 125% tariffs in on U.S. products in retaliation to U.S. President Donald Trump's tariff plans on imported goods.
In April, the U.S. administration launched an investigation into the pharmaceutical industry , with possible tariffs aimed at boosting domestic production of goods.
($1 = 0.8815 euros)
Reporting by Marleen Kaesebier in Gdansk, editing by Milla Nissi-Prussak
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