By staff writers

November 10, 2017 -- The Siemens Healthineers division of German industrial conglomerate Siemens AG saw revenues remain flat for the fourth quarter of fiscal 2017, but after adjustment for currency fluctuations, the business grew 5%.

For the period, the health business turned in revenue of 3.705 billion euros ($4.31 billion), essentially flat compared with revenue before currency adjustment of 3.698 billion euros ($4.31 billion). However, after currency adjustment, revenue grew 5%.

Operating profit at the health division came in at 702 million euros ($817 million), compared with 696 million euros ($810 million) in the fourth quarter of fiscal 2016. Orders grew 2% on an actual basis and 7% after currency adjustment.

The company said order intake was up due to growth in the diagnostic imaging business and large orders in its service business; growth came mainly in China and Europe and the area representing the Commonwealth of Independent States, Africa, and the Middle East.

For the full year, Siemens Healthineers posted revenue of 13.789 billion euros ($16.05 billion), up 2% on an actual basis and 3% after currency adjustment, compared with sales of 13.535 billion euros ($15.76 billion) for fiscal 2016. The health group's annual operating profit was 2.490 billion euros ($2.90 billion), compared with 2.325 billion euros ($2.71 billion) for fiscal 2016.

In other news, Siemens CEO Joe Kaeser provided additional details about the initial public offering (IPO) of Siemens Healthineers in an interview with CNBC this week.

Siemens previously announced that it plans to spin off the division in an IPO as a way to maximize the value of the unit and enable it to use its own shares to make acquisitions in the healthcare space. While Siemens originally was targeting August 2018 for the IPO, Kaeser told CNBC that it will have completed internal preparations by March of that year, and it will make the move when market conditions are right. Kaeser said the unit was a "fascinating healthcare business."

Finally, Siemens announced on November 9 the appointment of Jochen Schmitz as the new chief financial officer of Siemens Healthineers. Schmitz is currently head of accounting, reporting, and controlling for Siemens; he will succeed Thomas Rathmann, who is leaving Siemens Healthineers by mutual agreement.

Copyright © 2017

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