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Sales and margins fell at Siemens Healthineers in its third quarter as the company contended with lockdowns in China, declining COVID-19 testing sales and rising procurement costs.
Lower COVID-19 antigen test sales drove the 5.7% fall in revenue. Excluding the impact of COVID-19 tests, sales rose 0.9%, reflecting 8.2% growth at Varian that was offset by the deferral of revenue in China as a result of lockdowns that limited access to customer sites.
Shares in the company fell 8% in the wake of the results but management expects to bounce back in its fourth quarter, forecasting a steep increase in revenue that will enable it to hit its outlook for the full year.
Investors expected COVID-19 test sales to fall in the quarter but the magnitude of the other headwinds was a surprise. Lockdowns in China were a particular issue, causing a high teens-percentage decline in equipment order intake and a big setback to the core diagnostic business. Talk …