Philips Healthcare swings back into black for Q3 2015

Dutch industrial conglomerate Royal Philips Electronics reported third-quarter financial results that saw its Philips Healthcare division swing back into the black.

For the quarter, Philips Healthcare reported sales of $2.903 billion U.S. (2.627 billion euros), up 3% after adjusting for currency fluctuations. Without currency adjustments, revenue for the most recent period was up 18%, compared with revenues of $2.469 billion U.S. (2.234 billion euros) in the third quarter of 2014.

The healthcare division swung to a profit for the most recent period, reporting earnings before interest, taxes, and amortization (EBITA) of $279.6 million U.S. (253 million euros), compared with an operating loss of $166.9 million U.S. (151 million euros) in the same period the year before, when the company took charges related to the shutdown of CT manufacturing at its site in Cleveland.

The company said the growth in operating profit was driven by cost productivity, which was partly offset by negative currency impacts as well as increased spending on quality control and regulatory issues at the Cleveland CT plant.

With respect to orders, the company said that Philips Healthcare saw growth in order intake in the low single digits after currency adjustments. Orders for its Imaging Systems unit grew in the midsingle digits, while Healthcare Informatics and Solutions & Services saw double-digit declines.

Order growth was in the high single digits in Western Europe and midsingle digits in North America, while other mature geographies were in line with the third quarter of 2014. China saw a double-digit decline in orders.

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