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Yahoo
09-05-2025
- Business
- Yahoo
Siemens Healthineers lowers earnings forecast on expected tariff hit
This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers Q2 revenue: 5.9 billion euros 9% increase year-over-year Q2 net income: 537 million euros 25% increase year-over-year Siemens Healthineers has predicted a pretax tariff impact of up to 300 million euros ($339 million) this year, prompting the company to lower the bottom end of its earnings range. The company, which discussed tariffs as part of its fiscal second-quarter earnings Wednesday, is now targeting adjusted earnings per share of at least 2.20 euros in fiscal 2025. The bottom end of the earnings range was previously 2.35 euros. Siemens left the top end of the range unchanged at 2.50 euros. Siemens Healthineers CEO Bernd Montag said on an earnings call the change reflects the need to 'cater for these new tariffs and the rapidly changing global trade environment.' The forecast assumes the U.S. ups the tariff on European goods to 20% in July, when the current pause ends, and the existing taxes on trade with China, Canada and Mexico stay the same. Siemens Healthineers expects the situation to change. CFO Jochen Schmitz said on the call that 'the only thing which I'm pretty sure is that everything we assume today will most likely not be what we will see in 2026.' The uncertainty is informing Siemens Healthineers' response to the tariffs. 'As the situation is still in flux, especially with regard to European goods going to the U.S., it is too early for larger structural decisions in terms of adopting our production footprint,' Montag said. 'But let me be clear, we would have all the means to mitigate potential impacts from tariffs, thanks to our existing global production footprint, over the medium term.' Tariffs on European goods going to the U.S. will have the biggest effect on Siemens Healthineers, Schmitz said, accounting for more than half of the impact. The CFO said analysts could very conservatively model the impact of tariffs in 2026 by doubling the effect this year. That suggests a tariff impact of up to 600 million euros next year, but Siemens Healthineers could step up its response in that scenario, with Schmitz telling analysts 'we are able to implement changes to our global footprint should adjustments ultimately be deemed as economically meaningful.' Schmitz said mitigation measures such as shipping goods before tariffs kick in will expire this year, but the company will have other options in 2026 and beyond. The CFO named 'smaller changes in the supply chain' as a longer-term option, adding that Siemens Healthineers will proceed 'with prudence and cautiousness on costs.' Recommended Reading Siemens Healthineers opening logistics depots in US to boost inventory Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-05-2025
- Business
- Yahoo
Factbox-China exempts some US imports from tariffs
(Reuters) -China has granted tariff exemptions on select pharmaceuticals, microchips and aircraft engines from its 125% retaliatory tariffs on U.S. goods imposed after President Donald Trump unleashed his tariffs in April. It has created a so-called "whitelist" of U.S.-made products that would be exempted from its tariffs, two people familiar with the matter told Reuters, and some companies have said they have been able to import to China without paying the duties. Below are some companies that have said their imports have been free of China's retaliatory tariffs: HEALTHCARE ** SIEMENS HEALTHINEERS: CEO Bernd Montag said on May 7 that some of the German medical technology group's products, such as the so-called reagents in its diagnostics business, had been exempted from Chinese tariffs. If reagents, substances that cause chemical reactions, were imported with the newly imposed tariffs, their costs would more than double, Montag said in a press call. ** DIASORIN: The Italian diagnostics firm said on May 6 that more often than not, tariffs were not being applied to its goods when they pass customs in China. ** Pharmaceutical companies have reported that they had been able to import some drugs with tariff exemptions, the Beijing-based American Chamber of Commerce said on April 25. SEMICONDUCTORS ** A source at a memory chip design firm said on April 25 that the China Semiconductor Industry Association (CSIA) had informed it of waivers on imports of eight types of microchips, with analogue chips exempted but not memory chips. AEROSPACE ** SAFRAN: The head of the French engine maker said on April 25 that China had decided to grant exemptions for some aircraft parts, including jet engines. CHEMICALS ** China has waived the tariff on ethane imports, two sources with knowledge of the matter said on April 29. (Compiled by Bernadette Hogg in Gdansk, editing by Milla Nissi-Prussak)
Reuters
07-05-2025
- Business
- Reuters
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 ( , 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. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. Advertisement · Scroll to continue 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. Advertisement · Scroll to continue 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 Our Standards: The Thomson Reuters Trust Principles. , opens new tab Share X Facebook Linkedin Email Link Purchase Licensing Rights
Reuters
06-02-2025
- Business
- Reuters
Siemens Healthineers says it would welcome stake reduction by Siemens
Feb 6 (Reuters) - Siemens Healthineers' ( opens new tab CEO said on Thursday that the medical-technology company had a "very positive" view on considerations by parent Siemens ( opens new tab to reduce its stake. A higher free float would be "very good for the company in the long term as well as for the share price," Healthineers CEO Bernd Montag said in a call after the release of first quarter results. In December, Siemens's Chief Financial Officer Ralf Thomas said that the parent company, which currently holds a 75% stake, is reviewing its majority stake, with an update to be given at a capital markets day at the end of 2025. Healthineers said in an analyst call that while most of its debt financing was provided by Siemens, there would be a grace period during which refinancing would take place in case of a large stake reduction. "We have already refinanced a certain aspect of it over the last years at higher interest rates than they were beforehand," Chief Financial Officer Jochen Schmitz said, "I feel very well prepared to go through that process if it comes and we will be well prepared for this". Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here.
