Siemens Healthcare saw its revenue after currency adjustments edge up 3% in the company's fiscal second quarter (end-March 31), but the health division was hit by lower profit, and parent firm Siemens AG announced additional layoffs of 4,500 employees as part of its ongoing restructuring effort.
For the period, Siemens Healthcare posted revenue of $3.62 billion (3.212 billion euros), up 13% on an actual basis from revenue of $3.21 billion (2.854 billion euros) in the corresponding quarter of 2014, but up only 3% after adjusting for currency effects.
The division's profit was $592 million (526 million euros), compared with a profit of $603 million (536 million euros) in the same quarter the year before, down 2% before currency adjustment. The healthcare division reported increases in orders and revenue across all three of its reporting regions and across all businesses, with its imaging and therapy business leading the way with the largest increase.
In conjunction with the earnings announcement, management at Siemens AG said it is cutting an additional 4,500 jobs worldwide as part of its ongoing restructuring plan, in addition to job cuts of 7,800 that were announced in February.
Siemens said the measures are being taken in response to a difficult environment in the global power generation market, which is experiencing regulatory changes, "massive price erosion," aggressive competitors, and regional overcapacity.
