Medical leads Siemens business units

Siemens AG's Medical Engineering Group led all other Siemens business units in revenue growth for the first quarter (end-December), the German industrial conglomerate reported last month. Medical Engineering also recorded strong growth in earnings and market share, another sign that the division's turnaround is complete.

For the quarter, Medical Engineering reported revenues of $1 billion, compared with $768 million in the previous period, an increase of 24%. Medical Engineering was also one of two Siemens divisions that reported the biggest improvement in earnings, although specific profit numbers were not released. Orders, however, were lower than in the first quarter of 1998. Medical Engineering reported order volume of $1.06 billion, down about 3%.

Siemens is enjoying the benefits of a restructuring started in 1997 and designed to improve the division's profitability. The positive numbers should help dispel rumors that Siemens AG would agree to sell the Medical Engineering to Picker parent General Electric Company (see story, page 1).