Recent acquisitions in the diagnostics sector helped Siemens of Munich, Germany, post gains in revenue and group operating profit in its medical division for the fourth quarter.
Along with three other operating groups, the company's Siemens Medical Solutions division contributed the biggest profits to the firm in the fourth quarter (end-September 30). The unit reported revenue growth for the fourth quarter of 21%, to $4.184 billion (2.848 billion euros) compared to the same period in 2006. Revenues for the fiscal year were $14.57 billion (9.86 billion euros), a 20% increase compared to 2006.
Group profit for the medical division in the fourth quarter increased to $558 million (380 million euros) from the previous year, a 43% jump, despite the effect of the Deficit Reduction Act (DRA) of 2005 in the U.S., the company said.
Siemens Medical Solutions acquired Diagnostic Products late in 2006, and a diagnostics division of Bayer AG in the second quarter of 2007, both of which have been combined into the group's Diagnostics division. New sales volume from the Diagnostics division contributed to the group's revenue growth.
The company's acquisition of Dade Behring, which closed on November 6, will result in further integration costs in coming quarters, the company said.
By AuntMinnie.com staff writers
November 8, 2007
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