Philips posts flat sales, earnings gain in Q2

Although a single-digit decline in imaging system sales contributed to flat overall sales, Philips Healthcare was still able to increase profitability in its second quarter. The company also highlighted an increase in equipment orders during the period.

For the second quarter (end-June 30), Philips posted sales of 2.36 billion euros ($3.12 billion U.S.), flat on a comparable currency-adjusted basis and down 2% nominally from the 2.41 billion euros ($3.18 billion U.S.) reported in the same period of 2012. Growth in Philips' Customer Services, Patient Care and Clinical Informatics, and Home Healthcare Solutions groups were offset by a decline in its Imaging Systems unit due to soft order intake in the previous quarters.

Philips had earnings before interest, taxes, and amortization (EBITA) of 420 million euros ($554 million U.S.), compared with 308 million euros ($406 million U.S.) in the second quarter of 2012.

Comparable sales in growth geographies increased by 10% year-on-year, driven by strong growth in China and Latin America. Sales in mature geographies declined by 3%, with North America and Western Europe dipping by midsingle digits and low-single digits, respectively.

In positive developments, healthcare equipment order intake increased by 7% on a comparable basis. Patient Care and Clinical Informatics had double-digit growth, while Imaging Systems had low-single-digit growth.

On a geographical basis, equipment orders in North America increased in the low single digits, while orders in growth geographies surged by 19%. A low-single-digit decline was experienced in equipment orders from Western Europe.

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