Siemens Healthineers is to restructure its diagnostics division in the hope of making around 300 million euros ($301.71 million) in savings by 2025, the U.S.-German medical device maker said upon announcing its fiscal 2022 results on Wednesday.

One-off costs are initially expected in order to achieve the savings, the Siemens subsidiary said. Sources from within the company said the restructuring will involve cutting jobs and abandoning certain locations.

Siemens Healthineers also said it was lowering its targets for the laboratory division, with comparable sales growth of 3-5 per cent per year until 2025, rather than 4-6 per cent previously. The adjusted return on sales before interest and taxes (EBIT margin) is seen at 8-12 per cent by 2025 instead of a previously hoped-for 15 per cent.

The group said it was targeting adjusted basic earnings per share of between 2 euros and 2.20 euros for fiscal 2023. During fiscal 2022, it achieved comparable revenue growth of 5.9 per cent at around 21.7 billion euros, with full-year adjusted earnings before interest and taxes (EBIT) of 3.7 billion euros.

Both were slightly above analysts' forecasts according to a consensus provided on the company's website.

(Reuters)